The money market in Canada

Abstract

Canada provides one of the leading examples of a country in which the development of a money market has been officially encouraged and assisted. In particular, the Canadian experience emphasises what can be achieved in quite a short space of years, given the necessary underlying conditions that favour the emergence of such a market, plus the support of both the Government and of the central bank. The present article details the development of the Canadian money market the large changes it has undergone with regard to borrowing requirements, greater intermediation and increasing diversity of instruments and techniques. JEL: E44, E52

Keywords

• Canada
• money market
• borrowing requirements
• intermediation
• financial instruments