Estimating the Demand for Settlement Balances in the Canadian Large Value Transfer System

Nellie Zhang
This paper applies a static model of an interest rate corridor to the Canadian data, and estimates the aggregate demand for central-bank settlement balances in the Large Value Transfer System (LVTS). The empirical specification controls for various calendar effects that have been shown to cause fluctuations in LVTS payment flows. The analysis takes into account the downward divergence of the overnight interest rate from the target rate, which has been persistent since 2005. The results...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.