Arbeitspapier
Monetary policy implementation and payment system modernization
24/7 payment settlement may impact the demand for central bank reserves and thus could have an effect on monetary policy implementation. Using the standard workhorse model of monetary policy implementation (Poole, 1968), we show that 24/7 payment settlement induces a precautionary demand for central bank balances. Absent any changes or response by the central bank, this will put upward pressure on the overnight interest rate in a standard corridor system of monetary policy implementation. A floor system is much less sensitive to this change, as long as excess balances are large enough.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Canada Staff Working Paper ; No. 2020-26
- Classification
-
Wirtschaft
Money and Interest Rates: General
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Interest Rates: Determination, Term Structure, and Effects
- Subject
-
Monetary policy implementation
Payment clearing and settlement systems
- Event
-
Geistige Schöpfung
- (who)
-
Witmer, Jonathan
- Event
-
Veröffentlichung
- (who)
-
Bank of Canada
- (where)
-
Ottawa
- (when)
-
2020
- DOI
-
doi:10.34989/swp-2020-26
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Witmer, Jonathan
- Bank of Canada
Time of origin
- 2020
Other Objects (12)
Policy coordination in an international payment system
An empirical analysis of bill payment choices
Monetary policy implementation in a negative rate environment
Quantifying the economic benefits of payments modernization: The case of the large-value payment system
Changes in Payment Timing in Canada’s Large Value Transfer System
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Optimal monetary and macroprudential policies
The implementation of monetary policy in Canada
A tractable monetary model under general preferences
A new measure of monetary policy shocks
Revisiting the monetary sovereignty rationale for CBDCs
Central bank digital currency and monetary policy
Policy coordination in an international payment system
An empirical analysis of bill payment choices
Monetary policy implementation in a negative rate environment
Quantifying the economic benefits of payments modernization: The case of the large-value payment system
Changes in Payment Timing in Canada’s Large Value Transfer System
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Optimal monetary and macroprudential policies
The implementation of monetary policy in Canada
A tractable monetary model under general preferences
A new measure of monetary policy shocks
Revisiting the monetary sovereignty rationale for CBDCs
Central bank digital currency and monetary policy
Policy coordination in an international payment system
An empirical analysis of bill payment choices
Monetary policy implementation in a negative rate environment
Quantifying the economic benefits of payments modernization: The case of the large-value payment system
Changes in Payment Timing in Canada’s Large Value Transfer System
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Optimal monetary and macroprudential policies
The implementation of monetary policy in Canada
A tractable monetary model under general preferences
A new measure of monetary policy shocks
Revisiting the monetary sovereignty rationale for CBDCs