Staff working papers - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T13:47:45+00:00Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting
https://www.bankofcanada.ca/2018/12/staff-working-paper-2018-61/
This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path.2018-12-19T08:47:46+00:00enLimited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting2018-12-19CredibilityInflation targetsMonetary policy frameworkStaff Working Paper 2018-61https://www.bankofcanada.ca/wp-content/uploads/2018/12/swp2018-61.pdfLimited Commitment, Endogenous Credibility and the Challenges of Price-level TargetingGino CateauMalik ShukayevDecember 2018EE3E31E5E52Inference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours
https://www.bankofcanada.ca/2018/12/staff-working-paper-2018-60/
This paper relaxes the Bayesian Nash equilibrium (BNE) assumption commonly imposed in empirical discrete choice games with incomplete information. Instead of assuming that players have unbiased/correct expectations, my model treats a player’s belief about the behavior of other players as an unrestricted unknown function. I study the joint identification of belief and payoff functions.2018-12-19T08:12:56+00:00enInference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours2018-12-19Econometric and statistical methodsMarket structure and pricingStaff Working Paper 2018-60https://www.bankofcanada.ca/wp-content/uploads/2018/12/swp2018-60.pdfInference in Games Without Nash Equilibrium: An Application to Restaurants, Competition in Opening HoursErhao XieDecember 2018CC5C57LL1L13L8L85The Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?
https://www.bankofcanada.ca/2018/12/staff-working-paper-2018-59/
We document countercyclical corporate saving behavior with the degree of countercyclicality varying nonmonotonically with firm size. We then develop a dynamic stochastic general equilibrium model with heterogeneous firms to explain the pattern and study its implications for business cycles.2018-12-17T15:00:32+00:00enThe Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?2018-12-17Business fluctuations and cyclesEconomic modelsStaff Working Paper 2018-59https://www.bankofcanada.ca/wp-content/uploads/2018/12/swp2018-59.pdfThe Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?Xiaodan GaoShaofeng XuDecember 2018EE2E20E22E3E32GG3G31G32Should the Central Bank Issue E-money?
https://www.bankofcanada.ca/2018/12/staff-working-paper-2018-58/
Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves.2018-12-13T09:55:56+00:00enShould the Central Bank Issue E-money?2018-12-13Bank notesDigital currencies and fintechFinancial servicesPayment clearing and settlement systemsStaff Working Paper 2018-58https://www.bankofcanada.ca/wp-content/uploads/2018/12/swp2018-58.pdfShould the Central Bank Issue E-money?Charles M. KahnFrancisco RivadeneyraTsz-Nga WongDecember 2018EE4E42E5E51E58