Why the Bank of Canada Act Needs Updating: A Lesson from the Sub-Prime Crisis

John-Paul Koning

No 50, e-briefs from C.D. Howe Institute

Abstract: When trouble in the US housing market this past summer bubbled into problems in credit markets around the world, central banks took action. In a partially successful effort to keep those markets functioning smoothly, several central banks, including the Bank of Canada, took special steps to ensure liquidity – very short-term financing – was available to financial institutions. For the Bank of Canada, these steps included extending the list of securities it would accept as collateral when providing financing.

Keywords: monetary policy; Bank of Canada (search for similar items in EconPapers)
JEL-codes: E58 G18 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2007-12
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published on C.D. Howe website, December 2007

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