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810 Results

Rediscounting Under Aggregate Risk with Moral Hazard

Staff Working Paper 2007-51 James Chapman, Antoine Martin
Freeman (1999) proposes a model in which discount window lending and open market operations have different effects. This is important because in most of the literature, these policies are indistinguishable.

The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model

Staff Discussion Paper 2023-5 Martin Kuncl, Dmitry Matveev
We use a small open economy model with overlapping generations to evaluate secular dynamics of the neutral rate in Canada from 1980 to 2018. We find that changes in both foreign and domestic factors resulted in a protracted decline in the neutral rate.
Content Type(s): Staff research, Staff discussion papers Research Topic(s): Economic models, Interest rates, Monetary policy JEL Code(s): E, E2, E21, E22, E4, E43, E5, E50, E52, E58, F, F4, F41

Financial Constraints and Investment: Assessing the Impact of a World Bank Loan Program on Small and Medium-Sized Enterprises in Sri Lanka

Staff Working Paper 2003-37 Varouj Aivazian, Dipak Mazumdar, Eric Santor
The authors examine the investment behaviour of a sample of small, credit-constrained firms in Sri Lanka. Using a unique panel-data set, they analyze and compare the activities of two groups of small firms distinguished by their different access to financing; one group consists of firms with heavily subsidized loans from the World Bank, and the other consists of firms without such subsidies.
Content Type(s): Staff research, Staff working papers Research Topic(s): Development economics JEL Code(s): G, G0, G00, O, O1, O16
April 12, 2023

Monetary Policy Report – April 2023

Monetary Policy Report – April
Inflation in Canada remains high but should come down quickly to around 3% in the middle of this year because of lower energy prices, improved supply chains and restrictive monetary policy. The Bank projects that inflation will reach the 2% target by the end of 2024.
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