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The Neutral Rate of Interest in Canada
Mendes, Rhys R. - Bank of Canada - 2014
rate as the real policy rate consistent with output at its potential level and inflation equal to target after the effects … rate below neutral will be required to maintain inflation sustainably at target. …
Persistent link: https://www.econbiz.de/10010960403
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Should Central Banks Adjust Their Target Horizons in Response to House-Price Bubbles?
Roi, Meenakshi Basant; Mendes, Rhys R. - Bank of Canada - 2007
The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a …, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada … inception of the inflation-targeting regime. The authors' results also suggest that it may be appropriate to take a longer view …
Persistent link: https://www.econbiz.de/10005673249
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Analyzing Default Risk and Liquidity Demand during a Financial Crisis: The Case of Canada
Allen, Jason; Hortaçsu, Ali; Kastl, Jakub - Bank of Canada - 2011
This paper explores the reliability of using prices of credit default swap contracts (CDS) as indicators of default probabilities during the 2007/2008 financial crisis. We use data from the Canadian financial system to show that these publicly available risk measures, while indicative of initial...
Persistent link: https://www.econbiz.de/10009326649
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E-Money: Efficiency, Stability and Optimal Policy
Chiu, Jonathan; Wong, Tsz-Nga - Bank of Canada - 2014
What makes e-money more special than cash? Is the introduction of e-money necessarily welfare enhancing? Is an e-money system necessarily stable? What is the optimal way to design an efficient and stable e-money scheme? This paper provides a first attempt to develop a micro-founded, dynamic,...
Persistent link: https://www.econbiz.de/10010762052
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The Efficiency of Private E-Money-Like Systems: The U.S. Experience with State Bank Notes
Weber, Warren E. - Bank of Canada - 2014
In the United States prior to 1863 each bank issued its own distinct notes. E-money shares many of the characteristics of these bank notes. This paper describes some lessons relevant to e-money from the U.S. experience with state bank notes. It examines historical evidence on how well the bank...
Persistent link: https://www.econbiz.de/10010762053
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The Efficiency of Private E-Money-Like Systems: The U.S. Experience with National Bank Notes
Weber, Warren E. - Bank of Canada - 2015
Beginning in 1864, in the United States notes of national banks were the predominant medium of exchange. Each national bank issued its own notes. E-money shares many of the characteristics of these bank notes. This paper describes some lessons relevant to e-money from the U.S. experience with...
Persistent link: https://www.econbiz.de/10011132362
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Modelling Payments Systems: A Review of the Literature
Chiu, Jonathan; Lai, Alexandra - Bank of Canada - 2007
Payments systems play a fundamental role in an economy by providing the mechanisms through which payments arising from transactions can be settled. The existing literature on the economics of payments systems is large but loosely organized, in that each model uses a distinct set-up and sometimes...
Persistent link: https://www.econbiz.de/10005162417
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A Model of Tiered Settlement Networks
Chapman, James; Chiu, Jonathan; Molico, Miguel - Bank of Canada - 2008
This paper develops a model of settlement system to study the endogenous structure of settlement networks, and the welfare consequences of clearing agent failure. The equilibrium degree of tiering is endogenously determined by the cost structure and the information structure. The degree of...
Persistent link: https://www.econbiz.de/10005220954
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Policy Coordination in an International Payment System
Chapman, James T. E. - Bank of Canada - 2008
Given the increasing interdependence of both financial systems and attendant payment and settlement systems a vital question is what form should optimal policy take when there are two connected payment systems with separate regulators. In this paper I show that two central banks operating in a...
Persistent link: https://www.econbiz.de/10005808396
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The Liquidity Trap: Evidence from Japan
Weberpals, Isabelle - Bank of Canada - 1997
Japanese economic activity has been stagnant since the collapse of the speculative asset-price bubble in 1990, despite highly expansionary monetary policy which has brought interest rates down to record low levels. Although several reasons have been put forward to explain the sustained weakness...
Persistent link: https://www.econbiz.de/10005162514