Modelling Payments Systems: A Review of the Literature Staff Working Paper 2007-28 Jonathan Chiu, Alexandra Lai Payments systems play a fundamental role in an economy by providing the mechanisms through which payments arising from transactions can be settled. The existing literature on the economics of payments systems is large but loosely organized, in that each model uses a distinct set-up and sometimes a distinct equilibrium concept. Content Type(s): Staff research, Staff working papers Research Topic(s): Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E58, G, G2, G21
The Structure of Interest Rates in Canada: Information Content about Medium-Term Inflation Staff Working Paper 1997-10 Jim Day, Ron Lange This paper examines the relationship between the term structure of interest rates and future changes in inflation for Canada using a newly constructed par-value yield series. The main conclusion of the empirical work is that the slope of the nominal term structure from 1- to 5-year maturities is a reasonably good predictor of future changes in inflation over these horizons. Content Type(s): Staff research, Staff working papers Research Topic(s): Interest rates, Monetary and financial indicators JEL Code(s): E, E4, E43
December 21, 2006 Credit in a Tiered Payments System Financial System Review - December 2006 Alexandra Lai, Nikil Chande, Sean O'Connor Content Type(s): Publications, Financial System Review articles
Non-Linearities in the Output-Inflation Relationship: Some Empirical Results for Canada Staff Working Paper 1998-14 Chantal Dupasquier, Nicholas Ricketts This paper analyzes the short-run dynamic process of inflation in Canada and examines whether a systematic variation in the relationship between inflation and output can be detected over time. In the theoretical literature, different models of price-setting behaviour predict that the slope of the Phillips curve will be a function of macroeconomic conditions, implying a […] Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation: costs and benefits, Productivity
A Small Dynamic Hybrid Model for the Euro Area Staff Working Paper 2003-19 Ramdane Djoudad, Céline Gauthier The authors estimate and solve a small structural model for the euro area over the 1983–2000 period. Given the assumption of rational expectations, the model implies a set of orthogonality conditions that provide the basis for estimating the model's parameter by generalized method of moments. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy transmission JEL Code(s): E, E3, E31
June 20, 2010 The Impact of the Financial Crisis on Cross-Border Funding Financial System Review - June 2010 Harri Vikstedt, Jonathan Witmer, Yaz Terajima Content Type(s): Publications, Financial System Review articles
May 19, 2011 Lessons from the Use of Extraordinary Central Bank Liquidity Facilities Bank of Canada Review - Spring 2011 Stéphane Lavoie, Alex Sebastian, Virginie Traclet The recent crisis was characterized by widespread deterioration in funding conditions, as well as impairment of the mechanism through which liquidity is normally redistributed within the financial system. Central banks responded with extraordinary measures. This article examines the provision of liquidity by central banks during the crisis as they adapted their existing facilities and introduced new ones, while encouraging a return to private markets and mitigating moral hazard. A review of this experience illustrates the importance of clear principles for intervention, a flexible operating framework, and clear communication and co-operation by central banks. By exposing the degree of interdependence of financial institutions and markets, the crisis highlighted the need for reforms aimed at improving the infrastructure supporting core funding markets and the liquidity of individual institutions. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Financial markets, Financial stability, Lender of last resort
September 10, 2020 Economic progress report: a very uneven recovery Remarks (delivered virtually) Tiff Macklem The Canadian Chamber of Commerce Ottawa, Ontario Governor Tiff Macklem discusses the Bank’s latest interest rate announcement and explains the uneven impact that the COVID-19 pandemic is having on different sectors and people. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Coronavirus disease (COVID-19), Interest rates, Labour markets, Monetary policy, Recent economic and financial developments
Inflation Changes, Yield Spreads, and Threshold Effects Staff Working Paper 2002-40 Greg Tkacz Using interest rate yield spreads to explain changes in inflation, we investigate whether such relationships can be modelled using two-regime threshold models. Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Interest rates JEL Code(s): C, C5, C51, E, E3, E31
March 11, 1999 Then and now: the change in views on the role of monetary policy since the Porter Commission Lecture Gordon Thiessen C.D. Howe Institute Toronto, Ontario Tony Hampson made a number of outstanding contributions to Canadian public life as well as having a successful business career. Many in this audience will be familiar with the fact that for a number of years he was Chairman of the C.D. Howe Institute's Policy Analysis Committee. Content Type(s): Press, Speeches and appearances, Lectures