Research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:57:07+00:00Wait a Minute: The Efficacy of Discounting versus Non-Pecuniary Payment Steering
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-8/
Merchants who accept credit cards face payment processing fees. In most countries, the no-surcharge rule prohibits them from using surcharges to pass these fees on to customers.2016-02-29T14:44:40+00:00enWait a Minute: The Efficacy of Discounting versus Non-Pecuniary Payment Steering2016-02-29Bank notesMarket structure and pricingPayment clearing and settlement systemsStaff Working Paper 2016-8https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-8.pdfWait a Minute: The Efficacy of Discounting versus Non-Pecuniary Payment SteeringAngelika WelteFebruary 2016DD1D12EE5E58GG2G28Understanding Firms’ Inflation Expectations Using the Bank of Canada’s Business Outlook Survey
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-7/
Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada’s Business Outlook Survey, spanning the 2001 to 2015 period.2016-02-26T09:13:11+00:00enUnderstanding Firms’ Inflation Expectations Using the Bank of Canada’s Business Outlook Survey2016-02-26Central bank researchCredibilityEconometric and statistical methodsFirm dynamicsInflation and pricesInflation targetsMonetary policy frameworkStaff Working Paper 2016-7https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-7.pdfUnderstanding Firms' Inflation Expectations Using the Bank of Canada's Business Outlook SurveySimon RichardsMatthieu VerstraeteFebruary 2016CC1C2C25DD2D21D8D84EE3E31E5E52E58A Microfounded Design of Interconnectedness-Based Macroprudential Policy
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-6/
To address the challenges posed by global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision recommended an “additional loss absorbency requirement” for these institutions. Along these lines, I develop a microfounded design of capital surcharges that target the interconnectedness component of systemic risk.2016-02-25T10:43:21+00:00enA Microfounded Design of Interconnectedness-Based Macroprudential Policy2016-02-25Financial institutionsFinancial system regulation and policiesStaff Working Paper 2016-6https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-6.pdfA Microfounded Design of Interconnectedness-Based Macroprudential PolicyJose FiqueFebruary 2016DD8D82D85GG2G21G28Macroeconomic Uncertainty Through the Lens of Professional Forecasters
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-5/
We analyze the evolution of macroeconomic uncertainty in the United States, based on the forecast errors of consensus survey forecasts of different economic indicators. Comprehensive information contained in the survey forecasts enables us to capture a real-time subjective measure of uncertainty in a simple framework.2016-02-25T07:54:56+00:00enMacroeconomic Uncertainty Through the Lens of Professional Forecasters2016-02-25Business fluctuations and cyclesEconometric and statistical methodsStaff Working Paper 2016-5 https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-5.pdfMacroeconomic Uncertainty Through the Lens of Professional ForecastersSoojin JoRodrigo SekkelFebruary 2016CC3C38EE1E17E3E32To Share or Not to Share? Uncovered Losses in a Derivatives Clearinghouse
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-4/
This paper studies how the allocation of residual losses affects trading and welfare in a central counterparty. I compare loss sharing under two loss-allocation mechanisms – variation margin haircutting and cash calls – and study the privately and socially optimal degree of loss sharing.2016-02-23T08:09:14+00:00enTo Share or Not to Share? Uncovered Losses in a Derivatives Clearinghouse2016-02-23Economic modelsPayment clearing and settlement systemsStaff Working Paper 2014-6https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-4.pdfTo Share or Not to Share? Uncovered Losses in a Derivatives ClearinghouseRadoslav RaykovFebruary 2016GG1G19G2G21Monetary Commitment and the Level of Public Debt
https://www.bankofcanada.ca/2016/02/staff-working-paper-2016-3/
We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities.2016-02-19T11:13:37+00:00enMonetary Commitment and the Level of Public Debt2016-02-19CredibilityFiscal policyInflation targetsMonetary policy frameworkStaff Working Paper 2016-3https://www.bankofcanada.ca/wp-content/uploads/2016/02/swp2016-3.pdfMonetary Commitment and the Level of Public DebtStefano GnocchiLuisa LambertiniFebruary 2016EE2E24E3E32E5E52The Role of the International Monetary Fund in the Post-Crisis World
https://www.bankofcanada.ca/2016/02/staff-discussion-paper-2016-6/
The International Monetary Fund (IMF, or the Fund) has undergone a number of significant policy changes and reforms in the wake of the global financial crisis. Most notably, in December 2015, the United States approved long-delayed legislation to increase the representation of developing countries in the Fund’s governance structure.2016-02-16T09:05:23+00:00enThe Role of the International Monetary Fund in the Post-Crisis World2016-02-16International topicsStaff Discussion Paper 2016-6https://www.bankofcanada.ca/wp-content/uploads/2016/02/sdp2016-6.pdfThe Role of the International Monetary Fund in the Post-Crisis WorldMark KrugerRobert LavigneJulie McKayFebruary 2016FF3F33What Is Behind the Weakness in Global Investment?
https://www.bankofcanada.ca/2016/02/staff-discussion-paper-2016-5/
The recovery in private business investment globally remains extremely weak more than seven years after the financial crisis. This paper contributes to the ongoing policy debate on the factors behind this weakness by analyzing the role of growth prospects and uncertainty in explaining developments in non-residential private business investment in large advanced economies since the crisis.2016-02-08T12:33:39+00:00enWhat Is Behind the Weakness in Global Investment?2016-02-08Business fluctuations and cyclesCentral bank researchDomestic demand and componentsEconomic modelsInternational topicsMonetary policy and uncertaintyRecent economic and financial developmentsStaff Discussion Paper 2016-5https://www.bankofcanada.ca/wp-content/uploads/2016/02/sdp2016-5.pdfWhat Is Behind the Weakness in Global Investment?Maxime LeboeufRobert FayFebruary 2016CC2C23C3C33DD2D24D8D80D84EE2E22FF0F01GG3G31Limits to Arbitrage and Deviations from Covered Interest Rate Parity
https://www.bankofcanada.ca/2016/02/staff-discussion-paper-2016-4/
We document an increase in deviations from short-term covered interest rate parity (CIP) in the first half of 2015. Since the Swiss National Bank’s (SNB) decision to abandon its minimum exchange rate policy, both the magnitude and volatility of deviations from CIP have increased across several currency pairs. The effect is particularly pronounced for pairs involving the Swiss franc.2016-02-08T12:14:14+00:00enLimits to Arbitrage and Deviations from Covered Interest Rate Parity2016-02-08Exchange ratesInternational financial marketsStaff Discussion Paper 2016-4https://www.bankofcanada.ca/wp-content/uploads/2016/02/sdp2016-4.pdfLimits to Arbitrage and Deviations from Covered Interest Rate ParityJames PinningtonMaral ShamlooFebruary 2016FF3F31GG1G15New Housing Registrations as a Leading Indicator of the BC Economy
https://www.bankofcanada.ca/2016/02/staff-discussion-paper-2016-3/
Housing starts and building permits data are commonly used as leading indicators of economic activity. In British Columbia, all new homes must be registered with the Homeowner Protection Office, a branch of BC Housing, before the issuance of building permits and the start of construction.2016-02-04T14:23:49+00:00enNew Housing Registrations as a Leading Indicator of the BC Economy2016-02-04Business fluctuations and cyclesHousingRegional economic developmentsStaff Discussion Paper 2016-3https://www.bankofcanada.ca/wp-content/uploads/2016/02/sdp2016-3.pdfNew Housing Registrations as a Leading Indicator of the BC EconomyCalista CheungDmitry GranovskyFebruary 2016CC1C13C5C53EE3E32E37