December 8, 2008 Bank of Canada to Sell Treasury Bills for Balance Sheet Management Purposes The Bank of Canada announced today it will sell $0.50 billion of its holdings of treasury bills. This transaction will partially offset the temporary increase in assets associated with the outstanding term liquidity facilities. Details of the transaction are as follows: Content Type(s): Press, Market notices
Real Effects of Collapsing Exchange Rate Regimes: An Application to Mexico Staff Working Paper 1999-10 Patrick Osakwe, Lawrence L. Schembri This paper examines the impact of a collapsing exchange rate regime on output in an open economy in which shocks to capital flows and exports predominate. A sticky-price rational expectations model is used to compare the variability of output under the collapsing regime to that under alternative fixed and flexible regimes. Output is found to […] Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates JEL Code(s): F, F3, F31, F4, F41
Long-Run Demand for M1 Staff Working Paper 1995-11 Scott Hendry The goal of this paper is to investigate and estimate long-run relationships among M1, prices, output and interest rates, with a view to determining if there is a stable relationship that can be interpreted as long-run money demand. The paper uses a maximum-likelihood multiple-equation cointegration technique, developed by Johansen, to fit a system of equations […] Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Monetary aggregates
The Exchange Rate Regime and Canada's Monetary Order Staff Working Paper 1999-7 David Laidler It is a mistake to debate the merits of alternative exchange rate regimes for Canada independently of other features of the monetary order. A coherent order requires a well-defined goal for monetary policy, one that the authorities are capable of achieving, and that anchors private sector expectations. For it to be liberal, the relevant authorities […] Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Monetary policy framework JEL Code(s): E, E5, E52, F, F3, F31
Uncovering Inflation Expectations and Risk Premiums From Internationally Integrated Financial Markets Staff Working Paper 1999-6 Ben Fung, Scott Mitnick, Eli Remolona Theory and empirical evidence suggest that the term structure of interest rates reflects risk premiums as well as market expectations about future inflation and real interest rates. We propose an approach to extracting such premiums and expectations by exploiting both the comovements among interest rates across the yield curve and between two countries, Canada and […] Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Inflation and prices, Interest rates, International topics JEL Code(s): E, E4, E43, G, G1, G12, G15
The Quantity of Money and Monetary Policy Staff Working Paper 1999-5 David Laidler The relationships among the quantity theory of money, monetarism and policy regimes based on money-growth and inflation targeting are briefly discussed as a prelude to an exposition of alternative views of money's role in the transmission mechanism of monetary policy. The passive-money view treats the money supply as an endogenous variable that plays no role […] Content Type(s): Staff research, Staff working papers Topic(s): Monetary aggregates, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E5, E51, E52
Symétrie des chocs touchant les régions canadiennes et choix d'un régime de change Staff Working Paper 1994-9 Alain DeSerres, René Lalonde The authors attempt to determine whether the primary advantage of the flexible exchange rate between Canada and the United States—the rapid adjustment of the real exchange rate following an asymmetrical shock—is as evident at the regional as at the national level. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates
L'endettement du secteur privé au Canada: un examen macroéconomique Staff Working Paper 1994-7 Jean-François Fillion In this study, the author examines the hypothesis of private-sector debt overhang, which suggests that households and businesses may on occasion find themselves holding too much debt and so decide to reduce it by cutting back expenditures. His aim is to determine whether this hypothesis can help explain the weakness of credit growth and the sluggishness of the recent economic recovery in Canada. Content Type(s): Staff research, Staff working papers Topic(s): Sectoral balance sheet
Easing Restrictions on the Stripping and Reconstitution of Government of Canada Bonds Staff Working Paper 1998-8 David Bolder, Serge Boisvert The Department of Finance and the Bank of Canada, as its fiscal agent, work closely with financial market participants in the management of the federal government's debt program. From the government's perspective, maintaining a liquid well-functioning market in Government of Canada securities is a key factor in ensuring that debt-service costs are minimized. It is […] Content Type(s): Staff research, Staff working papers Topic(s): Debt management JEL Code(s): G, G1
Uncertainty and Multiple Paradigms of the Transmission Mechanism Staff Working Paper 1998-7 Walter Engert, Jack Selody An important challenge facing central banks is making decisions under uncertainty about the dynamic effects of monetary policy actions. The authors stress the importance of explicitly recognizing uncertainty about the transmission mechanism when formulating policy advice. They argue that one way to manage monetary policy under uncertainty is to draw on both an output-gap paradigm […] Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy and uncertainty, Monetary policy framework JEL Code(s): E, E5