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The (un)demand for money in Canada
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Authors and Corporations: | , |
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Other Authors: | Jones, Casey [Author] |
Type of Resource: | E-Book |
Language: | English |
published: | |
Series: |
Bank of Canada: Staff working paper ; 2018, 20 (May 2018)
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Subjects: | |
Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
Notes: | Zusammenfassung in französischer Sprache |
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. |
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Physical Description: | 1 Online-Ressource (circa 47 Seiten); Illustrationen |
Notes: | Zusammenfassung in französischer Sprache |