Further processing options
available via Open Access

The (un)demand for money in Canada

Saved in:

Bibliographic Details
Authors and Corporations: Dunbar, Geoffrey (Author), Jones, Casey (Author)
Other Authors: Jones, Casey [Author]
Type of Resource: E-Book
Language: English
published:
[Ottawa] Bank of Canada [2018]
Series: Bank of Canada: Staff working paper ; 2018, 20 (May 2018)
Subjects:
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Notes: Zusammenfassung in französischer Sprache
Description
Summary: A novel dataset from the Bank of Canada is used to estimate the deposit functions for banknotes in Canada for three denominations: $1,000, $100 and $50. The broad flavour of the empirical findings is that denominations are different monies, and the structural estimates identify the underlying sources of the non-neutrality. There is evidence of large and significant deposit costs for the highest-value denomination, the $1,000 banknote, but insignificant costs for the $100 and $50 denominations. The results imply that the interest rate elasticity of deposit is positive for the $1,000 but negative for the $100 and the $50. Third, 5 percent of the $1,000, 30 percent of the $100 and 22 percent of the $50 banknotes ever issued by the Bank of Canada do not circulate through financial institutions (in Canada). Finally, we find evidence that the Lehman Brothers crisis increased the deposit probability by a factor of 2-3 for the $1,000 banknote for a majority of the population in Canada.
Physical Description: 1 Online-Ressource (circa 47 Seiten); Illustrationen
Notes: Zusammenfassung in französischer Sprache