Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297079 
Year of Publication: 
2023
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2023-10
Publisher: 
Bank of Canada, Ottawa
Abstract: 
At the onset of the pandemic, the Bank of Canada transitioned its framework for monetary policy implementation from a corridor system to a floor system, which it has since decided to maintain. This decision was informed by the analysis and assessment of the two frameworks in this paper. We provide a comprehensive analysis of both frameworks and assess their relative merits based on five key criteria that define a sound framework. Our evaluation includes a discussion of how these relative merits have changed since the pandemic began. Specifically, we examine the evolving regulatory landscape, changes in payment systems, and the Bank's quantitative easing program to understand their implications for the relative strengths of the two frameworks for monetary policy implementation.
Subjects: 
Monetary policy implementation
Payment clearing and settlement systems
Market structure and pricing
JEL: 
D4
D47
E42
E5
E58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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