E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T16:50:08+00:00The 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 2018EE2E20E22E3E32GG3G31G32Fundamental Drivers of Existing Home Sales in Canada
https://www.bankofcanada.ca/2018/12/staff-discussion-paper-2018-16/
Existing home sales’ share of Canada’s economic pie has been rising in recent years, and variation around this trend has resulted in outsized contributions to changes in real gross domestic product (GDP). In this context, we use a cointegration framework to estimate the level of resale activity across the Canadian provinces that is supported by fundamentals—namely, full-time employment, housing affordability and migration flows—to help look through the volatility.2018-12-10T12:04:49+00:00enFundamental Drivers of Existing Home Sales in Canada2018-12-10Econometric and statistical methodsEconomic modelsHousingStaff Discussion Paper 2018-16https://www.bankofcanada.ca/wp-content/uploads/2018/12/sdp2018-16.pdfFundamental Drivers of Existing Home Sales in CanadaTaylor WebleyDecember 2018CC2C22C23EE2E27RR2R21Modelling the Macrofinancial Effects of a House Price Correction in Canada
https://www.bankofcanada.ca/2018/11/staff-analytical-note-2018-36/
We use a suite of risk-assessment models to examine the possible impact of a hypothetical house price correction, centred in the Toronto and Vancouver areas. We also assume financial stress significantly amplifies the macroeconomic impact of the house price decline.2018-11-14T09:00:37+00:00enModelling the Macrofinancial Effects of a House Price Correction in Canada2018-11-14The Framework for Risk Identification and Assessment
https://www.bankofcanada.ca/2018/11/technical-report-113/
Risk assessment models are an important component of the Bank’s analytical tool kit for assessing the resilience of the financial system. We describe the Framework for Risk Identification and Assessment (FRIDA), a suite of models developed at the Bank of Canada to quantify the impact of financial stability risks to the broader economy and a range of financial system participants (households, businesses and banks).2018-11-13T11:51:05+00:00enThe Framework for Risk Identification and Assessment2018-11-13Economic modelsFinancial institutionsFinancial stabilityHousingTechnical Report 113https://www.bankofcanada.ca/wp-content/uploads/2018/11/tr113.pdfThe Framework for Risk Identification and AssessmentCameron MacDonaldVirginie TracletNovember 2018CC3C5C6C7DD1EE0E00E2E27E3E37E4E47GG0G2G21Disaggregating Household Sensitivity to Monetary Policy by Expenditure Category
https://www.bankofcanada.ca/2018/10/staff-analytical-note-2018-32/
Because the Bank of Canada has started withdrawing monetary stimulus, monitoring the transmission of these changes to monetary policy will be important. Subcomponents of consumption and housing will likely respond differently to a monetary policy tightening, both in terms of the aggregate effect and timing.2018-10-02T11:19:36+00:00enDisaggregating Household Sensitivity to Monetary Policy by Expenditure Category2018-10-02Characterizing Canada’s Export Sector by Industry: A Supply-Side Perspective
https://www.bankofcanada.ca/2018/08/staff-analytical-note-2018-27/
This note examines supply-side trends in Canadian non-energy industries and their implications for export performance. Between 2002 and 2016, capital stocks and total labour input declined in many industries that export non-energy goods. These soft trends in the factors of production have likely contributed to the decline in non-energy exports in about half of the goods industries analyzed in this note.2018-08-27T10:23:09+00:00enCharacterizing Canada’s Export Sector by Industry: A Supply-Side Perspective2018-08-27The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity
https://www.bankofcanada.ca/2018/08/staff-working-paper-2018-40/
We document that, across households, the money consumption ratio increases with age and decreases with consumption, and that there has been a large increase in the money consumption ratio during the recent era of very low interest rates. We construct an overlapping generations (OLG) model of money holdings for transaction purposes subject to age (older households use more money), cohort (younger generations are exposed to better transaction technology), and time effects (nominal interest rates affect money holdings).2018-08-23T10:51:42+00:00enThe Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity2018-08-23Inflation: costs and benefitsStaff Working Paper 2018-40https://www.bankofcanada.ca/wp-content/uploads/2018/08/swp2018-40.pdfThe Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household HeterogeneityShutao CaoCésaire MehJosé-Víctor Ríos-RullYaz TerajimaAugust 2018EE2E21E4E41Sources of Borrowing and Fiscal Multipliers
https://www.bankofcanada.ca/2018/07/staff-working-paper-2018-32/
This paper finds that debt-financed government spending multipliers vary considerably depending on the location of the debt buyer. In a sample of 33 countries, we find that government spending multipliers are larger when government purchases are financed by issuing debt to foreign investors (non-residents), compared with when government purchases are financed by issuing debt to home investors (residents).2018-07-18T09:20:24+00:00enSources of Borrowing and Fiscal Multipliers2018-07-18Debt managementEconomic modelsFiscal policyInternational financial marketsStaff Working Paper 2018-32https://www.bankofcanada.ca/wp-content/uploads/2018/07/swp2018-32.pdfSources of Borrowing and Fiscal MultipliersRomanos PriftisSrecko ZimicJuly 2018EE2E6E62FF4F41HH3Reconciling Jaimovich-Rebelo Preferences, Habit in Consumption and Labor Supply
https://www.bankofcanada.ca/2018/06/staff-working-paper-2018-26/
This note studies a form of a utility function of consumption with habit and leisure that (a) is compatible with long-run balanced growth, (b) hits a steady-state observed target for hours worked and (c) is consistent with micro-econometric evidence for the inter-temporal elasticity of substitution and the Frisch elasticity of labor supply.2018-06-22T11:45:52+00:00enReconciling Jaimovich-Rebelo Preferences, Habit in Consumption and Labor Supply2018-06-22Business fluctuations and cyclesEconomic modelsLabour marketsStaff Working Paper 2018-26https://www.bankofcanada.ca/wp-content/uploads/2018/06/swp2018-26.pdfReconciling Jaimovich-Rebelo Preferences, Habit in Consumption and Labor SupplyTom D. HoldenPaul LevineJonathan SwarbrickJune 2018EE2E21E24Bending the Curves: Wages and Inflation
https://www.bankofcanada.ca/2018/05/staff-analytical-note-2018-15/
As economic slack continues to be absorbed and the labour market tightens, wage growth and inflation could increase faster than expected, which would suggest convexity in their Phillips curves. This note investigates whether there is convexity in the Phillips curves for Canadian wage growth and inflation by testing different empirical approaches over the post-inflation-targeting period.2018-05-30T11:47:36+00:00enBending the Curves: Wages and Inflation2018-05-30