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

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Author Info
John-Paul Koning
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.

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File URL: http://www.cdhowe.org/pdf/ebrief_50.pdf
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Publisher Info
Paper provided by C.D. Howe Institute in its series e-briefs with number 50.

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Length: 3 pages
Date of creation: Dec 2007
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Publication status: Published on C.D. Howe website, December 2007
Handle: RePEc:cdh:ebrief:50

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Related research
Keywords: monetary policy; Bank of Canada;

Find related papers by JEL classification:
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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This page was last updated on 2009-12-22.


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