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When agents are liquidity constrained, two options exist — sell assets or borrow. We compare the allocations arising in two economies: in one, agents can sell government bonds (outside bonds) and in the other they can borrow (issue inside bonds). All transactions are voluntary, implying no...
Persistent link: https://www.econbiz.de/10013156118
The authors study how two fiat monies, one safe and one risky, compete in a decentralized trading environment. The equilibrium value of the two currencies, their transaction velocities and agents' spending patterns are endogenously determined. The authors derive conditions under which agents...
Persistent link: https://www.econbiz.de/10012728730
In this paper, we focus on the Lagos and Wright (2005) monetary search model - a workhorse in the so-called New Monetarist Economics. After describing this micro-founded yet tractable framework, we review recent developments in extending it to study a variety of issues from monetary theory to...
Persistent link: https://www.econbiz.de/10012989443
When agents are liquidity constrained, two options exist - sell assets or borrow. We compare the allocations arising in two economies: In one, agents can sell government bonds (outside bonds) and in the other they can borrow (issue inside bonds). All transactions are voluntary, implying no...
Persistent link: https://www.econbiz.de/10014201980
The author evaluates the effect of the Bank of Canada's conditional commitment regarding the target overnight rate on … for Canada and the United States, the author finds that the Canadian 1-year treasury bill rates and 1-year forward 3-month … evidence appears to suggest that the Bank of Canada's conditional commitment likely has produced a persistent effect in …
Persistent link: https://www.econbiz.de/10003996812
Providing bank notes is one of the Bank of Canada’s core functions. The Bank is therefore interested in whether cash is … distance between the 637 reserve band offices in Canada and their closest cash sources. In this study, these cash sources are …
Persistent link: https://www.econbiz.de/10012520249
Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between … the Bank and the Government of Canada. The framework is reviewed every five years as part of the process for renewing the … 2020 workshop, "Towards the 2021 Renewal of the Bank of Canada's Monetary Policy Framework." The Bank will publish updated …
Persistent link: https://www.econbiz.de/10012613645
Chen et al. (2021) show that almost one-third of First Nations band offices in Canada are within 1 kilometre (km) of an … Nations are generally among the most geographically remote communities in Canada. Further, we show that these First Nations … are also among the lowest scoring communities in Canada according to a measure of community well-being based on indicators …
Persistent link: https://www.econbiz.de/10013193291
We evaluate the treatment effect of inflation targeting in seven industrial countries that adopted this policy in the 1990s. To address the self-selection problem of policy adoption, we make use of a variety of propensity score matching methods recently developed in the treatment effect...
Persistent link: https://www.econbiz.de/10013061334
Cash is being used less and less for making payments in many countries, including Canada and Sweden, which might … suggest that cash will eventually disappear. However, cash in circulation in most countries, including Canada, has been stable … paper explains these differences between Canada and Sweden by focusing separately on the transactions demand for cash and on …
Persistent link: https://www.econbiz.de/10012053000