December 21, 2011 Bank of Canada Announces Details of its Term Repo for Balance Sheet Management Purposes Operation The Bank of Canada announced today that it will conduct a Term Repo Operation for Balance Sheet Management Purposes operation. Content Type(s): Press, Market notices
Do Low Interest Rates Sow the Seeds of Financial Crises? Staff Working Paper 2011-31 Simona Cociuba, Malik Shukayev, Alexander Ueberfeldt A view advanced in the aftermath of the late-2000s financial crisis is that lower than optimal interest rates lead to excessive risk taking by financial intermediaries. Content Type(s): Staff research, Staff working papers Topic(s): Financial system regulation and policies, Monetary policy transmission JEL Code(s): D, D5, D53, E, E4, E44, E5, E52, G, G2, G28
December 16, 2011 Bank of Canada Announces Appointment of Special Adviser Media Relations Ottawa, Ontario The Bank of Canada today announced the appointment of Evan W. Siddall as Special Adviser to the Governor. Content Type(s): Press, Press releases
Trading Dynamics with Adverse Selection and Search: Market Freeze, Intervention and Recovery Staff Working Paper 2011-30 Jonathan Chiu, Thorsten Koeppl We study the trading dynamics in an asset market where the quality of assets is private information of the owner and finding a counterparty takes time. When trading of a financial asset ceases in equilibrium as a response to an adverse shock to asset quality, a large player can resurrect the market by buying up lemons which involves assuming financial losses. Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Financial stability JEL Code(s): E, E6, G, G1
Financial Frictions, Financial Shocks and Labour Market Fluctuations in Canada Staff Discussion Paper 2011-10 Yahong Zhang What are the effects of financial market imperfections on unemployment and vacancies in Canada? The author estimates the model of Zhang (2011) – a standard monetary dynamic stochastic general-equilibrium model augmented with explicit financial and labour market frictions – with Canadian data for the period 1984Q2–2010Q4, and uses it to examine the importance of financial shocks on labour market fluctuations in Canada. Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Financial markets, Labour markets JEL Code(s): E, E3, E32, E4, E44, J, J6
December 12, 2011 Growth in the Age of Deleveraging Remarks Mark Carney Empire Club of Canada / Canadian Club of Toronto Toronto, Ontario Governor Mark Carney discusses the factors driving global deleveraging and the implications for economic growth in Canada. Content Type(s): Press, Speeches and appearances, Remarks
December 12, 2011 Prolonged Period of Deleveraging Ahead, Says Bank of Canada Governor Mark Carney Media Relations Toronto, Ontario The world’s advanced economies are entering a prolonged period of deleveraging after several decades of accumulating debt, Bank of Canada Governor Mark Carney said today. “The direction may be clear, but the magnitude and abruptness of the process are not. It could be long and orderly or it could be sharp and chaotic.” “In general, […] Content Type(s): Press, Press releases
December 8, 2011 Strengthening Bank Management of Liquidity Risk: The Basel III Liquidity Standards Financial System Review - December 2011 Natasha Khan, Tamara Gomes Content Type(s): Publications, Financial System Review articles
December 8, 2011 Financial System Review - December 2011 In this issue of the Financial System Review, the Bank of Canada’s Governing Council judges that the risks to the stability of Canada’s financial system are high and have increased markedly over the past six months, owing primarily to an escalation of the sovereign debt crisis in the euro area and a weaker global economic outlook. Erratum: The data for Chart 7 on page 8 were plotted incorrectly. See revised chart. Content Type(s): Publications, Financial Stability Report