How Do Agents Form Macroeconomic Expectations? Evidence from Inflation Uncertainty Staff Working Paper 2024-5 Tao Wang The uncertainty regarding inflation that is observed in density forecasts of households and professionals helps macroeconomists understand the formation mechanism of inflation expectations. Shocks to inflation take time to be perceived by all agents in the economy, and such rigidity is lower in a high-inflation environment. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Inflation and prices, Monetary policy and uncertainty JEL Code(s): D, D8, D84, E, E3, E31, E7, E71
February 14, 2024 Start date for the morning auction of Receiver General cash balances The Bank of Canada (the “Bank”), in its role as fiscal agent for the Government of Canada, previously announced the government’s intention to reintroduce morning auctions of Receiver General (RG) cash balances. Today, the Bank is announcing that RG auctions will commence on February 21st, 2024, and be conducted daily at 9:15 am. Content Type(s): Press, Market notices
February 14, 2024 Panel participation by Rhys R. Mendes, Deputy Governor of the Bank of Canada On Wednesday, February 14, 2024, Rhys R. Mendes, Deputy Governor of the Bank of Canada, will participate in a panel discussion at the Lazaridis School of Business & Economics at Wilfrid Laurier University. Content Type(s): Press, Media advisories
February 12, 2024 Reconciliation Action Plan The Bank’s Reconciliation Action Plan will guide the Bank as it continues its Reconciliation journey. In line with our mandate, the action plan outlines two interconnected pathways to help us build an equitable and inclusive organizational culture and deepen our understanding of the Indigenous economy.
February 8, 2024 Webpage for Government of Canada purchases of Canada Mortgage Bonds The Bank of Canada is today launching a new webpage with details on the Government of Canada’s purchases of Canada Mortgage Bonds (CMBs). Content Type(s): Press, Market notices Source(s): Canada Mortgage Bonds: Government purchases and holdings
Central Bank Digital Currency and Banking Choices Staff Working Paper 2024-4 Jiaqi Li, Andrew Usher, Yu Zhu To what extent does a central bank digital currency (CBDC) compete with bank deposits? To answer this question, we develop and estimate a structural model where each household chooses which financial institution to deposit their digital money with. Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Digital currencies and fintech JEL Code(s): E, E5, E50, E58
February 7, 2024 Summary of Governing Council deliberations: Fixed announcement date of January 24, 2024 This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on January 24, 2024. Content Type(s): Publications, Summary of deliberations
February 7, 2024 Release of the Bank of Canada’s summary of deliberations On Wednesday, February 7, 2024, the Bank of Canada will publish a summary of the deliberations that took place ahead of its interest rate decision on January 24, 2024. Content Type(s): Press, Media advisories
The Role of International Financial Integration in Monetary Policy Transmission Staff Working Paper 2024-3 Jing Cynthia Wu, Yinxi Xie, Ji Zhang We propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We study the implications of financial integration on monetary policy transmission. Among various aspects of financial integration, the bond duration plays a major role. These results hold for conventional and unconventional monetary policies. Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, International financial markets, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, F, F3, F36, F4, F42