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2333
result(s)
Adopting Price-Level Targeting under Imperfect Credibility: An Update
Staff Working Paper 2008-37
Oleksiy Kryvtsov,
Malik Shukayev,
Alexander Ueberfeldt
This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields higher welfare than inflation targeting.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
The Role of Bank Capital in the Propagation of Shocks
Staff Working Paper 2008-36
Césaire Meh,
Kevin Moran
Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the propagation of shocks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Financial institutions,
Financial system regulation and policies,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E52,
G,
G2,
G21
Globalization and Inflation: The Role of China
Staff Working Paper 2008-35
Denise Côté,
Carlos De Resende
In this paper, we develop a theoretical model which identifies four channels–import prices, competition with domestic suppliers and workers, and commodity prices–through which price- and wage-setting conditions in country j may affect inflation in country i.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
International topics
JEL Code(s):
E,
E2,
E22,
E3,
E32,
E4,
E44
Combining Canadian Interest-Rate Forecasts
Staff Working Paper 2008-34
David Bolder,
Yuliya Romanyuk
Model risk is a constant danger for financial economists using interest-rate forecasts for the purposes of monetary policy analysis, portfolio allocations, or risk-management decisions. Use of multiple models does not necessarily solve the problem as it greatly increases the work required and still leaves the question "which model forecast should one use?"
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Interest rates
JEL Code(s):
C,
C1,
C11,
E,
E4,
E43,
E47
The Impact of Sovereign Wealth Funds on International Financial Stability
Staff Discussion Paper 2008-14
Tamara Gomes
Over the recent period, many emerging-market economies and commodity-exporting nations have experienced unprecedented growth and accumulated substantial amounts of foreign exchange reserves. The management of these foreign reserves has led to the emergence of important financial actors: sovereign wealth funds (SWFs).
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial stability,
Recent economic and financial developments
JEL Code(s):
F,
F2,
F21,
F3,
F31,
F32,
G,
G1,
G15
What To Do about Bilateral Credit Limits in the LVTS When a Closure Is Anticipated: Risk versus Liquidity Sharing among LVTS Participants
Staff Discussion Paper 2008-13
Sean O'Connor,
Greg Caldwell
The authors examine the effect of a trade-off between shared credit risk and liquidity efficiency, among participants in Tranche 2 of the Large Value Transfer System (LVTS T2), on their decisions to leave open, or close, their bilateral credit limits (BCLs) to a participant at risk of imminent closure.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial institutions,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
G,
G2,
G21,
L,
L1,
L13,
L14
Human Capital Risk and the Firmsize Wage Premium
Staff Working Paper 2008-33
Danny Leung,
Alexander Ueberfeldt
Why do employed persons in large firms earn more than employed persons in small firms, even after controlling for observable characteristics? Complementary to previous results, this paper proposes a mechanism that gives an answer to this question.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Labour markets,
Productivity
JEL Code(s):
J,
J2,
J24,
J3,
J31
Market Structure and the Diffusion of E-Commerce: Evidence from the Retail Banking Industry
Staff Working Paper 2008-32
Jason Allen,
Robert Clark,
Jean-François Houde
This paper studies the role that market structure plays in affecting the diffusion of electronic banking. Electronic banking (and electronic commerce more generally) reduces the cost of performing many types of transactions for firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Market structure and pricing
JEL Code(s):
D,
D1,
D14,
D4,
G,
G2,
G21,
L,
L1
September 15, 2008
Productivity in Canada: Does Firm Size Matter?
The research findings highlighted in this article suggest that firm-size differences play a significant role in explaining the productivity gap between Canada and the United States. The authors review factors that lead to a positive relationship between productivity and size and then look at Canadian evidence of this relationship at the firm level. They quantify the extent to which the change in Canadian productivity as well as the Canada-U.S. productivity differences can be accounted for by the change in the importance of large firms and identify several factors that play a role in determining average firm size and aggregate productivity.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Productivity