The (un)demand for money in Canada / by Geoffrey Dunbar and Casey Jones.: FB3-5/2018-20E-PDF
"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"--Abstract, p. ii.
Permanent link to this Catalogue record:
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | The (un)demand for money in Canada / by Geoffrey Dunbar and Casey Jones. |
| Series title | Bank of Canada staff working paper, 1701-9397 ; 2018-20 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "May 2018." Includes bibliographical references (p. 28-30). Includes abstract in French. |
| Publishing information | [Ottawa] : Bank of Canada, 2018. |
| Author / Contributor | Dunbar, Geoffrey R. Jones, Casey. |
| Description | ii, 42 p. : col. charts. |
| Catalogue number |
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| Subject terms | Currency Bank deposits Econometrics |
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