August 19, 2010 Monetary Policy and the Zero Bound on Nominal Interest Rates Bank of Canada Review - Summer 2010 Robert Amano, Malik Shukayev The recent financial crisis and global economic slowdown have renewed interest in monetary policy options when the policy interest rate is at or near zero. Content Type(s): Publications, Bank of Canada Review articles
November 1, 2006 Renewal of the Inflation-Control Target (November 2006) Commentary and technical data relating to the 2006 target renewal. Content Type(s): Background materials
Are Hedge Funds a Hedge for Increasing Government Debt Issuance? Staff discussion paper 2025-7 Adam Epp, Jeffrey Gao This paper studies the rapid increase since 2019 of Government of Canada (GoC) debt issuance alongside greater hedge fund participation at GoC bond auctions. We find a systematic relationship between GoC debt stock and hedge fund bidding shares at auction. Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D4, D44, G, G1, G12, G2, G23, H, H6, H63 Research Theme(s): Financial markets and funds management, Funds management, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
Assessment of the Effects of Macroprudential Tightening in Canada Staff analytical note 2016-12 Martin Kuncl During the period of 2008 to 2012, the rules for government-backed mortgage insurance were tightened on four occasions. In this note, we estimate the effects through a simple econometric exercise using a vector error-correction model (VECM). Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C3, C32, E, E6, E65, G, G2, G28 Research Theme(s): Financial system, Financial system regulation and oversight, Household and business credit
Should Monetary Policy Lean Against Housing Market Booms? Staff working paper 2016-19 Sami Alpanda, Alexander Ueberfeldt Should monetary policy lean against housing market booms? We approach this question using a small-scale, regime-switching New Keynesian model, where housing market crashes arrive with a logit probability that depends on the level of household debt. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, E5, E52, G, G0, G01 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission
May 16, 2016 The Micro and Macro of Downward Nominal Wage Rigidity Bank of Canada Review - Spring 2016 Robert Amano, Dany Brouillette, Stefano Gnocchi, Natalia Kyui The article examines the extent of downward nominal wage rigidity in Canada and its implications for monetary policy. The authors ask whether its existence is a sufficient argument for a higher inflation target if concerns about the effective lower bound are adequately addressed. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E3, E4, E5, J, J2, J23, J3, J30
January 14, 2008 Backgrounder on Questions in the Business Outlook Survey Concerning Past Sales and Credit Conditions Starting with the winter 2007–08 survey, the results of two additional questions became included in the Business Outlook Survey (BOS) publication: the balance of opinion on past sales and the balance of opinion on credit conditions. This backgrounder briefly describes the two questions and presents the correlations between the responses and relevant economic data. Content Type(s): Background materials
June 2, 2006 Another Look at the Inflation-Target Horizon Bank of Canada Review - Summer 2006 Donald Coletti, Jack Selody, Carolyn A. Wilkins The conduct of monetary policy within an inflation-targeting framework requires the establishment of an inflation-target horizon, which is the average time it takes inflation to return to the target. Policy-makers have an interest in communicating this horizon, since it is likely to help anchor inflation expectations. This article focuses on the determination of the appropriate policy horizon by reporting on two recent Bank of Canada studies. The evidence suggests that the current target horizon of six to eight quarters remains appropriate. It is important to note that the duration of the optimal inflation-target horizon varies widely, depending on the combination of shocks to the economy. In rare cases when the financial accelerator is triggered by a persistent shock, such as an asset-price bubble, it may be appropriate to take a longer view of the inflation-target horizon. Content Type(s): Publications, Bank of Canada Review articles
January 25, 2012 Collateral Portfolios and Adverse Dependence Financial System Review - December 2007 Alejandro García, Ramazan Gençay Content Type(s): Publications, Financial System Review articles
A Spatial Model of Bank Branches in Canada Staff working paper 2020-4 Heng Chen, Matthew Strathearn Using data on bank branch locations across Canada from 2008 to 2018, we explore an interesting aspect of bank branch competition—geographic concentration. We find that bank branch density does not correlate with geographic and market concentration; however, we do find strong correlation with postal-code demographics. Content Type(s): Staff research, Staff working papers JEL Code(s): L, L1, R, R3 Research Theme(s): Financial markets and funds management, Market structure, Financial system, Financial institutions and intermediation