March 7, 2006 Bank of Canada raises overnight rate target by 1/4 percentage point to 3 3/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 3 3/4 per cent. Content Type(s): Press, Press releases
Monetary Policy in an Estimated DSGE Model with a Financial Accelerator Staff Working Paper 2006-9 Ian Christensen, Ali Dib The authors estimate a sticky-price dynamic stochastic general-equilibrium model with a financial accelerator, à la Bernanke, Gertler, and Gilchrist (1999), to assess the importance of financial frictions in the amplification and propagation of the effects of transitory shocks. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Economic models JEL Code(s): E, E3, E32, E37, E4, E44
A Structural Error-Correction Model of Best Prices and Depths in the Foreign Exchange Limit Order Market Staff Working Paper 2006-8 Ingrid Lo, Stephen Sapp Traders using the electronic limit order book in the foreign exchange market can watch the posted price and depth of the best quotes change over the day. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial markets JEL Code(s): C, C3, D, D8, F, F3, F31
Ownership Concentration and Competition in Banking Markets Staff Working Paper 2006-7 Alexandra Lai, Raphael Solomon Many countries prohibit large shareholdings in their domestic banks.The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986). Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial services, Financial system regulation and policies JEL Code(s): G, G2, G21, G28, G3, G32, L, L1, L10
Regime Shifts in the Indicator Properties of Narrow Money in Canada Staff Working Paper 2006-6 Tracy Chan, Ramdane Djoudad, Jackson Loi Financial innovations and the removal of the reserve requirements in the early 1990s have made the distinction between demand and notice deposits arbitrary. Content Type(s): Staff research, Staff working papers Topic(s): Monetary aggregates JEL Code(s): E, E4, E40, E42, E5, E50
Are Currency Crises Low-State Equilibria? An Empirical, Three-Interest-Rate Model Staff Working Paper 2006-5 Christopher Cornell, Raphael Solomon Suppose that the dynamics of the macroeconomy were given by (partly) random fluctuations between two equilibria: "good" and "bad." Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy and uncertainty JEL Code(s): C, C6, C62, E, E5, E59, F, F4, F41
Forecasting Canadian Time Series with the New Keynesian Model Staff Working Paper 2006-4 Ali Dib, Mohamed Gammoudi, Kevin Moran The authors document the out-of-sample forecasting accuracy of the New Keynesian model for Canada. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Economic models JEL Code(s): C, C1, C12, E, E3, E32, E37
Money and Credit Factors Staff Working Paper 2006-3 Paul Gilbert, Erik Meijer The authors introduce new measures of important underlying macroeconomic phenomena that affect the financial side of the economy. Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Econometric and statistical methods, Monetary aggregates JEL Code(s): C, C4, C43, C8, C82, E, E5, E51
March 1, 2006 A Primer on Canada’s Large Value Transfer System Darcey McVanel, Neville Arjani This paper provides a comprehensive overview of Canada’s Large Value Transfer System (LVTS). Content Type(s): Background materials Topic(s): Payment clearing and settlement systems
February 7, 2006 Nominations Invited for the Bank of Canada's Law Enforcement Award of Excellence for Counterfeit Deterrence Media Relations Ottawa, Ontario Effective today, the Bank of Canada is inviting nominations for the third annual Law Enforcement Award of Excellence for Counterfeit Deterrence. Content Type(s): Press, Press releases