Research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T11:28:08+00:00The Impacts of Minimum Wage Increases on the Canadian Economy
https://www.bankofcanada.ca/2017/12/staff-analytical-note-2017-26/
This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass-through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018.2017-12-29T09:40:59+00:00enThe Impacts of Minimum Wage Increases on the Canadian Economy2017-12-29Wage Dynamics and Returns to Unobserved Skill
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-61/
Economists disagree about the factors driving the substantial increase in residual wage inequality in the U.S. over the past few decades. We identify and estimate a general model of log wage residuals that incorporates: (i) changing returns to unobserved skills, (ii) a changing distribution of unobserved skills, and (iii) changing volatility in wages due to factors unrelated to skills.2017-12-27T10:25:24+00:00enWage Dynamics and Returns to Unobserved Skill2017-12-27Econometric and statistical methodsLabour marketsStaff Working Paper 2017-61https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-61.pdfWage Dynamics and Returns to Unobserved SkillLance LochnerYoungmin ParkYoungki ShinDecember 2017CC2C23JJ2J24J3J31Who Pays? CCP Resource Provision in the Post-Pittsburgh World
https://www.bankofcanada.ca/2017/12/staff-discussion-paper-2017-17/
At the Pittsburgh Summit in 2009, G20 countries announced their commitment to clear all standardized over-the-counter (OTC) derivatives through central counterparties (CCPs). Since then, CCPs have become increasingly important and there has been an extensive program of regulatory enhancements to both them and OTC derivatives markets.2017-12-20T10:00:47+00:00enWho Pays? CCP Resource Provision in the Post-Pittsburgh World2017-12-20Financial marketsFinancial stabilityFinancial system regulation and policiesStaff Discussion Paper 2017-17https://www.bankofcanada.ca/wp-content/uploads/2017/12/sdp2017-17.pdfWho Pays? CCP Resource Provision in the Post-Pittsburgh WorldJorge Cruz LopezMark ManningDecember 2017GG0G01G2G28Which Model to Forecast the Target Rate?
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-60/
Specifications of the Federal Reserve target rate that have more realistic features mitigate in-sample over-fitting and are favored in the data.2017-12-20T08:33:46+00:00enWhich Model to Forecast the Target Rate?2017-12-20Financial marketsInterest ratesStaff Working Paper 2017-60https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-60.pdfWhich Model to Forecast the Target Rate?Bruno FeunouJean-Sébastien FontaineJianjian JinDecember 2017EE4E43Credit Risk Transfer and Bank Insolvency Risk
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-59/
The present paper shows that, everything else equal, some transactions to transfer portfolio credit risk to third-party investors increase the insolvency risk of banks. This is particularly likely if a bank sells the senior tranche and retains a sufficiently large first-loss position.2017-12-19T14:37:59+00:00enCredit Risk Transfer and Bank Insolvency Risk2017-12-19Credit risk managementFinancial institutionsFinancial stabilityStaff Working Paper 2017-59https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-59.pdfCredit Risk Transfer and Bank Insolvency RiskMaarten van OordtDecember 2017GG2G21G28G3G32Variance Premium, Downside Risk and Expected Stock Returns
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-58/
We decompose total variance into its bad and good components and measure the premia associated with their fluctuations using stock and option data from a large cross-section of firms.2017-12-19T14:27:16+00:00enVariance Premium, Downside Risk and Expected Stock Returns2017-12-19Asset pricingFinancial marketsStaff Working Paper 2017-58https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-58.pdfVariance Premium, Downside Risk and Expected Stock ReturnsBruno FeunouRicardo Lopez AliouchkinRoméo TedongapLai XiDecember 2017GG1G12Credit Crunches from Occasionally Binding Bank Borrowing Constraints
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-57/
We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings.2017-12-19T09:52:31+00:00enCredit Crunches from Occasionally Binding Bank Borrowing Constraints2017-12-19Business fluctuations and cyclesCredit and credit aggregatesEconomic modelsFinancial marketsStaff Working Paper 2017-57https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-57.pdfCredit Crunches from Occasionally Binding Bank Borrowing ConstraintsTom D. HoldenPaul LevineJonathan SwarbrickDecember 2017EE2E22E3E32E5E51GG2Recent Evolution of Canada’s Credit-to-GDP Gap: Measurement and Interpretation
https://www.bankofcanada.ca/2017/12/staff-analytical-note-2017-25/
Over the past several years, the Bank for International Settlements has noted that Canada’s credit-to-GDP gap has widened and is above thresholds indicating future banking stress.2017-12-18T11:08:43+00:00enRecent Evolution of Canada’s Credit-to-GDP Gap: Measurement and Interpretation2017-12-18A Barometer of Canadian Financial System Vulnerabilities
https://www.bankofcanada.ca/2017/12/staff-analytical-note-2017-24/
This note presents a composite indicator of Canadian financial system vulnerabilities—the Vulnerabilities Barometer. It aims to complement the Bank of Canada’s vulnerabilities assessment by adding a quantitative and synthesized perspective to the more granular (distributional) analysis presented in the Financial System Review.2017-12-18T10:27:38+00:00enA Barometer of Canadian Financial System Vulnerabilities2017-12-18Bitcoin Awareness and Usage in Canada
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-56/
There has been tremendous discussion of Bitcoin, digital currencies and FinTech. However, there is limited empirical evidence of Bitcoin’s adoption and usage. We propose a methodology to collect a nationally representative sample using the Bitcoin Omnibus Survey (BTCOS) to track the ubiquity and usage of Bitcoin in Canada.2017-12-08T12:00:03+00:00enBitcoin Awareness and Usage in Canada2017-12-08Bank notesDigital currencies and fintechEconometric and statistical methodsStaff Working Paper 2017-56https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-56.pdfBitcoin Awareness and Usage in CanadaChristopher HenryKim HuynhGradon NichollsDecember 2017CC1C12EE4