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89 Resources for

bank of canada

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Extraction of Expected Inflation from Canadian Forward Rates: The author of this article explains that forward interest rates (nominal interest rates agreed upon today for an investment period starting in the future) could serve as one indicator of the stance of monetary policy. They argue for the use of a forward rate as an information variable because it...; Tags: Financial Planning, Currency & Foreign exchange, Financial services, Bank of Canada, interest rate, inflation; White papers
Towards a New Measure of Interest Rate Expectations in Canada:: This article gives you a clear view of how financial markets expect interest rates to behave is very useful in the conduct of monetary policy. Information on the market's view of future short-term interest rae movements enables monetary authorities to identify any discrepancies between the path they desire for interest...; Tags: Financial Planning, Financial services, Bank of Canada, interest rate, financial market, financial; White papers
How to Improve Inflation Targeting at the bank of canada: This paper shows that if the Bank of Canada is optimally adjusting its monetary policy instrument in response to inflation indicators to target 2 per cent inflation at a two-year horizon, then deviations of inflation from 2 per cent represent the Bank's forecast errors, and should be uncorrelated with its...; Tags: Currency & Foreign exchange, inflation, Bank of Canada, bank; White papers
Information and Analysis for Monetary Policy: Coming to a Decision: This article outlines one of the Bank's key approaches to dealing with the uncertainty that surrounds decisions on monetary policy: the consideration of a wide range of information from a variety of sources. It specifically describes the information and analysis that the monetary policy decision-makers—the Governing Council of the Bank...; Tags: Bank of Canada, analysis, bank; White papers
The Information Content of Canadian Dollar Futures Options: Central banks implement monetary policy through financial markets. As a result, they need to understand how the markets will perceive their actions. bankers routinely examine forward rates and the prices of futures for both interest rates and exchange rates for signs of the market's expectations of future movements in interest...; Tags: Free trade, Bank of Canada, exchange rate, interest rate, financial market, agent, financial; White papers

Measuring Interest Rate Expectations in Canada: Financial market expectations regarding future changes in the target for the overnight rate of interest are an important source of information for the Bank of Canada. Financial markets are the mechanism through which the policy rate affects other financial variables, such as longer-term interest rates, the exchange rate, and other...; Tags: Financial accounting, Asset management, Bank of Canada, financial market, asset, interest rate, financial, asset price; White papers
Central Bank Policy, Inflation, and Stock Prices: Much of the fall was attributed to comments about inflation and stock prices made by Federal Reserve Chairman Alan Greenspan to the House of Representatives Committee on the Budget. The comments did not, however, clarify the nature of these implied relationships. On the one hand, Greenspan stated that, “Re-emergence of...; Tags: Currency & Foreign exchange, Investment, Bank of Canada, inflation, Alan Greenspan, stock price, stock, knowledge, bank; White papers
Pitfalls and Opportunities for the Conduct of Monetary Policy: Financial market developments over the last decade have greatly increased interest in the properties of high-frequency data. Stimulated by the search for greater arbitrage opportunities, which have been created or facilitated by innovations in computer technology, central banks are now able to monitor and, if they choose, react daily to...; Tags: Financial accounting, Financial services, Bank of Canada, financial market, arbitrage, financial, bank, monitor, computer; White papers
The Effects of Bank Consolidation on Risk Capital Allocation and Market Liquidity: This paper analyzes the impact of financial consolidation on market liquidity by studying the effects of consolidation on the risk-bearing capacity of market makers (or dealers) in dealership markets. To carry out our analysis, two previously separate areas of research are bridged. The first, market microstructure theory, focuses on how...; Tags: Investment, Financial services, Bank of Canada, liquidity, consolidation, analysis, allocation, risk management, financial, theory, merger, bank; White papers
Yield and Inflation Differentials between Canada and the United States: It is well established that the term structure of interest rates reflects market expectations about future inflation and real interest rates. Extracting such information from the term structure is important for the implementation of monetary policy. This paper proposes an approach for extracting information about inflation expectations and inflation-risk premiums...; Tags: Financial Planning, Financial services, Bank of Canada, interest rate, inflation, Canada, U.S., bank; White papers
Corporate Bond Spreads and the Business Cycle: This paper examines the predictive power of credit spreads from the corporate bond market. The high-yield bond spread and investment-grade spread can explain 68 per cent and 42 per cent of output variations one year ahead, while the term spread based on government debts can explain only 12 per cent...; Tags: Investment, Bank of Canada, bond, theory; White papers
Dynamic Factor Analysis for Measuring Money: The authors describe work on a new measure of money that has a more satisfactory means of identifying and removing the effects of financial innovations. The new method distinguishes between the measured data (currency and deposit balances) and the underlying phenomena of interest (the intended use of money for transactions...; Tags: Bank of Canada, analysis, financial; White papers
Monetary Policy and Uncertainty: The Bank of Canada monitors a wide range of indicators in assessing the extent of pressures on capacity and inflation. The Bank's conventional estimate of the output gap provides an overall assessment of the degree of slack in the economy, but this estimate is subject to considerable uncertainty. The Bank...; Tags: Financial services, Bank of Canada, inflation, interest rate, bank, monitor, strategy; White papers
Funds Management: The Bank of Canada is the fiscal agent for the Government of Canada. In that role it provides banking services and treasury-management services to the government and manages its domestic debt, as well as its foreign reserve assets and liabilities which includes banker and treasury, debt management, foreign reserves, unclaimed...; Tags: Bank of Canada, treasury management, banking, agent, asset; White papers
Models in Policy-Making: This article examines another strategy in the Bank's approach to dealing with an uncertain world: the use of carefully articulated models to produce economic forecasts and to examine the implications of the various risks to those forecasts. Economic models are deliberate simplifications of a complex world that allow economists to...; Tags: Bank, Bank Of Canada, Model, Financial Services; White papers
Seventy Years of Central Banking: The bank of canada in International Context, 1935-2005: On the seventieth birthday of the Bank of Canada, this report evaluates the Bank's contribution to monetary policy in an international context. It focuses on: the reasons for the establishment of the central bank in 1935, its unique record of floating in a sea of fixed currencies under Bretton Woods;...; Tags: Financial services, National Bureau of Economic Research, Bank of Canada, bank, inflation, payment; White papers 2005-08-01
The Monetary Origins of Asymmetric Information in International Equity Markets: Existing studies using low-frequency data show that macroeconomic shocks contribute little to international stock market co-variation. Those studies, however, do not account for the presence of asymmetric information, where sophisticated investors generate private information about the fundamentals that drive returns in many countries. This paper uses a new microstructure data...; Tags: Investment, Financial services, Bank of Canada, equity, stock market, stock, interest rate; White papers 2004-12-01
International Equity Flows and Returns: A Quantitative Equilibrium Approach: This paper considers a model that accommodates both features and calibrates it to data on dividends, returns, and U.S. investors' trades in the G-7 countries. They show that this provides a unified explanation for a number of regularities that have been noted in the empirical literature, but that have not...; Tags: Financial accounting, Bank of Canada, investor, dividend, equity, U.S.; White papers 2004-11-01
The Transmission of World Shocks to Emerging-Market Countries: An Empirical Analysis: The first step in designing effective policies to stabilize an economy is to understand business cycles. No country is isolated from the world economy and external shocks are becoming increasingly important. The paper documents the sources of macroeconomic fluctuations in 22 emerging-market countries, and measures two specific shocks that could...; Tags: Bank of Canada, analysis, interest rate; White papers 2004-11-01
Market Valuation and Risk Assessment of Canadian Banks: This paper revisits the market valuation of Canadian banks and proposes a measure of distance-to default, the Z-score, which can be used to assess the risk of bank failures on a timely basis. The model is based on the Rabinovitch (1989) option-pricing model, which is an extension of the Merton...; Tags: Financial services, Strategy, SECURITY, Bank of Canada, market valuation, risk assessment, bank, risk, interest rate; White papers 2004-09-01