March 11, 2021 COVID-19, savings and household spending Remarks (delivered virtually) Lawrence L. Schembri Restaurants Canada Toronto, Ontario Deputy Governor Lawrence Schembri talks about the Bank’s latest interest rate announcement and discusses how COVID-19 has affected savings and the outlook household spending. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
Recent Evolution of Canada’s Credit-to-GDP Gap: Measurement and Interpretation Staff analytical note 2017-25 Timothy Grieder, Dylan Hogg, Thibaut Duprey Over the past several years, the Bank for International Settlements has noted that Canada’s credit-to-GDP gap has widened and is above thresholds indicating future banking stress. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D1, E, E3, E32, G, G0, G01, G1, G2, G21, G3, G30 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit
December 18, 2001 The Resolution of International Financial Crises: Private Finance and Public Funds Bank of Canada Review - Winter 2001–2002 Andy Haldane, Mark Kruger Over the past year and a half, authors Andy Haldane of the Bank of England and Mark Kruger of the Bank of Canada have been developing a framework for the resolution of international financial crises that aligns incentives for all parties in a way that deals with the crisis and preserves the integrity of the international financial system. The framework is built on principles, not rules. It attempts to be clear about the respective roles and responsibilities of the public and private sectors. A central element in shaping private sector expectations is knowledge that the official sector will behave predictably. Constraints on lending by the International Monetary Fund are a key step in that direction. They ensure that private sector involvement is a crucial part of crisis resolution, and they help encourage debtors and creditors to seek co-operative solutions to a crisis. Characterized by constraints, clarity, and orderliness, the framework has the potential to reduce the incidence and cost of financial crises. Content Type(s): Publications, Bank of Canada Review articles
The Bank of Canada COVID‑19 stringency index: measuring policy response across provinces Staff analytical note 2021-1 Calista Cheung, Jerome Lyons, Bethany Madsen, Sarah Miller, Saarah Sheikh We construct an index that systematically measures and tracks the stringency of government policy responses to the COVID-19 pandemic across Canadian provinces. Researchers can use this stringency index to analyze how the pandemic is affecting the economy. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, E20, H, H7, I, I1, I18, R, R1 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting
Modelling the Sovereign Debt Strategy: A Practical Primer Staff discussion paper 2025-16 Nicolas Audet, Adam Epp, Jeffrey Gao, Joe Ning We provide a primer on the role of debt modelling in informing the sovereign debt issuance strategy and discuss how specific challenges faced by debt managers can influence model design decisions. These insights are supported by our experiences using the Canadian Debt Strategy Model to guide policy decisions. Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G1, G11, G17, H, H6, H63, H68 Research Theme(s): Financial markets and funds management, Funds management, Models and tools, Economic models
June 14, 2012 The Resolution of Systemically Important Financial Institutions Financial System Review - June 2012 Alexandra Lai, Adi Mordel Content Type(s): Publications, Financial System Review articles
(Un)Conventional Monetary and Fiscal Policy Staff working paper 2023-6 Jing Cynthia Wu, Yinxi Xie We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E6, E61, E62, E63 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Monetary policy tools and implementation, Real economy and forecasting
Creations and Redemptions in Fixed-Income Exchange-Traded Funds: A Shift from Bonds to Cash Staff analytical note 2019-34 Rohan Arora, Sébastien Betermier, Guillaume Ouellet Leblanc, Adriano Palumbo, Ryan Shotlander The creation and redemption activity of fixed-income exchange-traded funds listed in the United States has shifted. Funds of established issuers have traditionally exchanged their shares for baskets of bonds. In contrast, young funds managed by new issuers tend to create and redeem their shares almost exclusively in cash. Cash transactions imply that new funds are taking on exposure to liquidity risk. This has implications for financial stability. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G1, G2, G20, G23 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk
Predictive Ability of Commodity Prices for the Canadian Dollar Staff analytical note 2016-2 Kimberly Berg, Pierre Guérin, Yuko Imura Recent sharp declines in commodity prices and the simultaneous depreciation of the Canadian dollar (CAD) relative to the U.S. dollar (USD) have rekindled an interest in the relationship between commodity prices and the CAD-USD exchange rate. Content Type(s): Staff research, Staff analytical notes Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Econometric, statistical and computational methods
Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System Staff working paper 2021-64 Neville Arjani, Fuchun Li, Zhentong Lu Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, E, E4, E42, G, G1, G2, G28 Research Theme(s): Models and tools, Economic models, Money and payments, Payment and financial market infrastructures