E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T08:45:15+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 Economy2017-12-29Credit 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 2017EE2E22E3E32E5E51GG2Alternative Scenario to the October 2017 MPR Base-Case Projection: Higher Potential Growth
https://www.bankofcanada.ca/2017/10/staff-analytical-note-2017-18/
We construct an alternative scenario in which trend labour input and business investment are stronger than that expected in the Bank of Canada’s base-case projection in the October 2017 Monetary Policy Report.2017-10-25T06:02:48+00:00enAlternative Scenario to the October 2017 MPR Base-Case Projection: Higher Potential Growth2017-10-25Downward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”
https://www.bankofcanada.ca/2017/08/staff-working-paper-2017-31/
The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It is traditionally assumed that positive inflation could “grease the wheels” of the labour market by putting downward pressure on real wages, easing labour market adjustments during a recession.2017-08-03T11:47:33+00:00enDownward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”2017-08-03Inflation targetsLabour marketsStaff Working Paper 2017-31https://www.bankofcanada.ca/wp-content/uploads/2017/08/swp2017-31.pdfDownward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”Joel WagnerAugust 2017EE2E24E5E52Labour Force Participation: A Comparison of the United States and Canada
https://www.bankofcanada.ca/2017/07/staff-analytical-note-2017-9/
This note explores the drivers behind the recent increase in the US participation rate in the labour market and assesses the likelihood of a similar gain in Canada. The growth in the US participation rate has largely been due to a pickup in the participation of prime-age workers following a post-recession decline.2017-07-10T12:02:06+00:00enLabour Force Participation: A Comparison of the United States and Canada2017-07-10Wage Growth in Canada and the United States: Factors Behind Recent Weakness
https://www.bankofcanada.ca/2017/07/staff-analytical-note-2017-8/
This note examines the relatively subdued pace of wage growth in Canada since the commodity price decline in 2014 and assesses whether the weakness is attributable to cyclical (e.g., labour market slack) or structural factors (e.g., resource reallocation and demographic change).2017-07-10T11:56:06+00:00enWage Growth in Canada and the United States: Factors Behind Recent Weakness2017-07-10A Structural Interpretation of the Recent Weakness in Business Investment
https://www.bankofcanada.ca/2017/07/staff-analytical-note-2017-7/
Since 2012, business investment growth has slowed considerably in advanced economies, averaging a little less than 2 per cent versus the 4 per cent growth rates experienced in the period leading up to crisis. Several recent studies have attributed a large part of the weakness in business investment to cyclical factors, including soft aggregate demand, and, to a lesser degree, heightened uncertainty and tighter financial conditions.2017-07-04T08:05:54+00:00enA Structural Interpretation of the Recent Weakness in Business Investment2017-07-04Downward Nominal Wage Rigidity, Inflation and Unemployment: New Evidence Using Micro‐Level Data
https://www.bankofcanada.ca/2017/06/staff-analytical-note-2017-6/
Recent evidence suggests that the extent of downward nominal wage rigidity (DNWR) in the Canadian labour market has risen following the 2008–09 recession (see Brouillette, Kostyshyna and Kyui 2016).2017-06-01T14:11:08+00:00enDownward Nominal Wage Rigidity, Inflation and Unemployment: New Evidence Using Micro‐Level Data2017-06-01Volatility Risk and Economic Welfare
https://www.bankofcanada.ca/2017/05/staff-working-paper-2017-20/
This paper examines the effects of time-varying volatility on welfare. I construct a tractable endogenous growth model with recursive preferences, stochastic volatility, and capital
adjustment costs.2017-05-26T15:43:45+00:00enVolatility Risk and Economic Welfare2017-05-26Business fluctuations and cyclesEconomic modelsStaff Working Paper 2017-20https://www.bankofcanada.ca/wp-content/uploads/2017/05/swp2017-20.pdfVolatility Risk and Economic WelfareShaofeng XuMay 2017EE2E3Why Is Global Business Investment So Weak? Some Insights from Advanced Economies
https://www.bankofcanada.ca/wp-content/uploads/2017/05/boc-review-spring17-fay.pdf
Various drivers of business investment can be used to explain the underwhelming performance of investment in advanced economies since the global financial crisis, particularly since 2014. The slow growth in aggregate demand cannot by itself explain the full extent of the recent weakness in investment, which appears to be linked primarily to the collapse of global commodity prices and a rise in economic uncertainty. Looking ahead, business investment growth is likely to remain slower than in the pre-crisis period, largely because of structural factors such as population aging.2017-05-11T10:26:31+00:00enWhy Is Global Business Investment So Weak? Some Insights from Advanced Economies2017-05-11