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9255 Results

March 3, 2014

Household Spending and Debt

Highlights the value of ‘prudent’ borrowing in enhancing welfare, but also the risks of over-indebtedness for households, the economy and financial stability. Discusses trends in household debt, various debt metrics and why monetary policy is concerned with how households use borrowed funds.
Content Type(s): Explainers Topic(s): Financial stability
August 19, 2011

Opening Statement before the House of Commons Standing Committee on Finance

Opening statement Mark Carney House of Commons Standing Committee on Finance Ottawa, Ontario
Thank you for this opportunity to appear here today. Recent Economic and Financial Developments In recent weeks, several downside risks to the Bank’s July Monetary Policy Report (MPR) projection have been realised. The European sovereign crisis has intensified, the U.S. credit rating has been downgraded, and a broad range of data has signalled slower global […]
August 18, 2011

Bank Balance Sheets, Deleveraging and the Transmission Mechanism

The author investigates the influence of bank capital on economic activity, using a macroeconomic model that incorporates an explicit role for financial intermediation. The analysis focuses on the role of a “bank-capital channel” in propagating and amplifying monetary policy actions and other shocks. The question of whether weaker bank balance sheets make the economy more vulnerable to adverse shocks is examined, together with the impact of initiatives, such as countercyclical capital buffers, on the transmission of monetary policy and other shocks to the real economy.
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