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195 Results

Estimating Canada’s Effective Lower Bound

Staff Analytical Note 2015-2 Jonathan Witmer, Jing Yang
In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates.
November 19, 2015

A Survey of Consumer Expectations for Canada

The Bank of Canada recently launched a quarterly survey to measure the expectations of Canadian households: the Canadian Survey of Consumer Expectations (CSCE). The data collected provide comprehensive information about consumer expectations for and uncertainty about inflation, the labour market and household finance. This article describes the CSCE and illustrates its potential to offer rich information about Canadian consumers for researchers and policy-makers.
November 19, 2015

Recent Enhancements to the Management of Canada’s Foreign Exchange Reserves

As the size and complexity of the foreign exchange reserves have grown over the years, enhancements to the management framework needed to keep pace. This is a common theme for most reserve managers around the world. In Canada, the enhancements focused on governance, portfolio management, risk measurement and risk management. This article briefly describes these enhancements, why they were implemented and some of the lessons learned along the way.
November 13, 2015

Innovation, Central-Bank Style

Remarks Carolyn A. Wilkins Rotman School of Management and Munk School of Global Affairs Toronto, Ontario
Senior Deputy Governor Wilkins discusses how the Bank is tackling the most important strategic challenges facing central banks today and how innovative thinking is critical to its success.

Quantitative Easing as a Policy Tool Under the Effective Lower Bound

Staff Discussion Paper 2015-14 Abeer Reza, Eric Santor, Lena Suchanek
This paper summarizes the international evidence on the performance of quantitative easing (QE) as a monetary policy tool when conventional policy rates are constrained by the effective lower bound (ELB). A large body of evidence suggests that expanding the central bank’s balance sheet through large-scale asset purchases can provide effective stimulus under the ELB.

The International Experience with Negative Policy Rates

Staff Discussion Paper 2015-13 Harriet Jackson
A key issue in the renewal of the inflation-control agreement is the question of the appropriate level of the inflation target. Many observers have raised concerns that with the reduction in the neutral rate, and the experience of the recent financial crisis, the effective lower bound (ELB) is more likely to be binding in the future if inflation targets remain at 2 per cent.
October 12, 2015

Integrating Financial Stability into Monetary Policy

Remarks Stephen S. Poloz National Association for Business Economics Washington, D.C.
Governor Poloz speaks about the Bank’s research agenda and how it supports efforts to integrate financial stability concerns into monetary policy.
February 24, 2015

Lessons New and Old: Reinventing Central Banking

Remarks Stephen S. Poloz Western University President's Lecture London, Ontario
Governor Stephen S. Poloz discusses the need to integrate financial stability concerns with inflation control in conducting monetary policy after the financial crisis.
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