Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297078 
Year of Publication: 
2023
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2023-9
Publisher: 
Bank of Canada, Ottawa
Abstract: 
The COVID-19 pandemic placed unprecedented strain on the global financial system. We describe how the Bank of Canada responded to the rapidly deteriorating liquidity in core Canadian fixed-income markets. We also describe how market functioning improved after the Bank intervened. The Bank implemented several emergency facilities to ease market-wide liquidity strains, restore market functioning and support the stabilization and recovery of the Canadian economy. Over time, market functioning improved, and liquidity returned to prepandemic levels. The Bank's facilities helped resolve market dysfunction and ensured that credit continued to be extended to households and businesses.
Subjects: 
Coronavirus disease (COVID-19)
Financial markets
Market structure and pricing
Monetary policy and uncertainty
JEL: 
E44
E58
G01
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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