Posts

• February 22, 2007

  Adjusting to Economic Change

  Remarks Sheryl Kennedy Greater Saskatoon Chamber of Commerce Saskatoon, Saskatchewan

  The past five years have indeed been a period of great and relatively rapid economic change, both here in Saskatchewan and across the country. In my remarks today, I'd like to describe this change and discuss its significance to our economic well-being.

  Content Type(s): Press, Speeches and appearances, Remarks
• February 20, 2007

  Standing Senate Committee on National Finance

  Remarks Paul Jenkins Standing Senate Committee on National Finance Ottawa, Ontario

  The preamble of this bill addresses some very important issues: the need for Canadians to trust in the management of the public purse, and the importance of openness and accountability. I can assure you that the Bank of Canada takes these issues very seriously.

  Content Type(s): Press, Speeches and appearances, Remarks
• February 15, 2007

  Temporary measures to reinforce the target for the overnight rate

  On 9 March 2006, the Bank of Canada announced temporary measures to reinforce its target for the overnight rate. Specifically, the Bank announced that it would reduce the target for settlement balances to zero and, on a temporary basis, no longer commit to neutralizing all of the Sale and Repurchase Agreements (SRAs) conducted.

  Content Type(s): Press, Market notices

• Optimization in a Simulation Setting: Use of Function Approximation in Debt Strategy Analysis

  Staff Working Paper 2007-13 David Bolder, Tiago Rubin

  The stochastic simulation model suggested by Bolder (2003) for the analysis of the federal government's debt-management strategy provides a wide variety of useful information. It does not, however, assist in determining an optimal debt-management strategy for the government in its current form.

  Content Type(s): Staff research, Staff working papers Topic(s): Debt management, Econometric and statistical methods, Financial markets, Fiscal policy JEL Code(s): C, C0, C1, C14, C15, C5, C51, C52, C6, C61, C65, E, E6, G, G1, H, H6, H63

• Schooling, Inequality and Government Policy

  Staff Working Paper 2007-12 Oleksiy Kryvtsov, Alexander Ueberfeldt

  This paper asks: What is the effect of government policy on output and inequality in an environment with education and labor-supply decisions? The answer is given in a general equilibrium model, consistent with the post 1960s facts on male wage inequality and labor supply in the U.S. In the model, education and labor-supply decisions depend on progressive income taxation, the education system, the social security system, and technology-driven wage differentials.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Potential output, Productivity JEL Code(s): H, H5, H52, J, J3, J31, J38

• Uncollateralized Overnight Loans Settled in LVTS

  Staff Working Paper 2007-11 Scott Hendry, Nadja Kamhi

  Loan-level data on the uncollateralized overnight loan market is generated using payment data from Canada's Large Value Transfer System (LVTS) and a modified version of the methodology proposed in Furfine (1999). There were on average just under 100 loans extended in this market each day from March 2004 to March 2006 for a total daily value of about $5 billion.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Interest rates JEL Code(s): E, E4, E44, E5, E50, G, G1, G12

• Do We Need the IMF to Resolve a Crisis? Lessons from Past Episodes of Debt Restructuring

  Staff Working Paper 2007-10 Philipp Maier

  This study investigate how debt restructurings have evolved over the decades. Debtors and creditors have a long history of engaging an outsider – a “third party”, such as the IMF – to organise and facilitate debt restructurings.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, International topics JEL Code(s): E, E5, F, F3, N, N1, N2

• Best Instruments for Market Discipline in Banking

  Staff Working Paper 2007-9 Greg Caldwell

  The author develops a dynamic model of banking competition to determine which capital instrument is most effective in disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD) as funding sources.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): G, G2, G21, G28

• Evaluating Forecasts from Factor Models for Canadian GDP Growth and Core Inflation

  Staff Working Paper 2007-8 Frédérick Demers, Calista Cheung

  This paper evaluates the performance of static and dynamic factor models for forecasting Canadian real output growth and core inflation on a quarterly basis. We extract the common component from a large number of macroeconomic indicators, and use the estimates to compute out-of-sample forecasts under a recursive and a rolling scheme with different window sizes.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C3, C32, E, E3, E37

• Technology Shocks and Business Cycles: The Role of Processing Stages and Nominal Rigidities

  Staff Working Paper 2007-7 Louis Phaneuf, Nooman Rebei

  This paper develops and estimates a dynamic general equilibrium model that realistically accounts for an input-output linkage between firms operating at different stages of processing. Firms face technological change which is specific to their processing stage and charge new prices according to stage-specific Calvo-probabilities.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models JEL Code(s): E, E3, E32