E - Macroeconomics and Monetary Economics - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T14:08:02+00:00The State of Labour Market Churn in Canada
https://www.bankofcanada.ca/2019/01/staff-analytical-note-2019-4/
The literature highlights that labour market churn, including job-to-job transitions, is a key element of wage growth. Using microdata from the Labour Force Survey, we compute measures of labour market churn and compare these with pre-crisis averages to assess implications for wage growth.2019-01-30T09:45:54+00:00enThe State of Labour Market Churn in Canada2019-01-30Drivers of Weak Wage Growth in Advanced Economies
https://www.bankofcanada.ca/2019/01/staff-analytical-note-2019-3/
Since the global financial crisis, advanced-economy wage growth has been generally low relative to past recoveries, especially after accounting for the evolution of labour market conditions over this period. This paper investigates a variety of potential explanations for this weakness, drawing on findings from the literature as well as analysis of recent labour market data in advanced economies.2019-01-28T08:59:36+00:00enDrivers of Weak Wage Growth in Advanced Economies2019-01-28The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-6/
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.2019-01-21T12:52:56+00:00enThe Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model2019-01-21Economic modelsInterest ratesMonetary policyMonetary policy transmissionStaff Working Paper 2019-6https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-6.pdfThe Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE ModelStefan HohbergerRomanos PriftisLukas VogelJanuary 2019EE4E44E5E52FF4F41Corporate Debt Composition and Business Cycles
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-5/
Based on empirical evidence, I propose a dynamic stochastic general equilibrium model with two financial sectors to analyze the role of corporate debt composition (bank versus bond financing) in the transmission of economic shocks.2019-01-18T12:07:50+00:00enCorporate Debt Composition and Business Cycles2019-01-18Business fluctuations and cyclesFinancial institutionsFinancial marketsRecent economic and financial developmentsStaff Working Paper 2019-5https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-5.pdfCorporate Debt Composition and Business CyclesJelena ZivanovicJanuary 2019EE3E32E4E44Frictional Capital Reallocation I: Ex Ante Heterogeneity
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-4/
This paper studies dynamic general equilibrium models where firms trade capital in frictional markets. Gains from trade arise due to ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market; others acquire it in the secondary market.2019-01-14T10:07:35+00:00enFrictional Capital Reallocation I: Ex Ante Heterogeneity2019-01-14Monetary policyStaff Working Paper 2019-4https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-4.pdfFrictional Capital Reallocation I: Ex Ante HeterogeneityRandall WrightSylvia Xiaolin XiaoYu ZhuJanuary 2019EE2E22E4E44Can Capital Deepening Explain the Global Decline in Labor’s Share?
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-3/
We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model.2019-01-14T09:53:44+00:00enCan Capital Deepening Explain the Global Decline in Labor’s Share?2019-01-14Firm dynamicsInternational topicsLabour marketsStaff Working Paper 2019-3https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-3.pdfCan Capital Deepening Explain the Global Decline in Labor’s Share?Andrew GloverJacob ShortJanuary 2019EE1E13E2E22E25JJ3A Framework for Analyzing Monetary Policy in an Economy with E-money
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-1/
This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) multiple equilibria may exist; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved.2019-01-14T08:58:59+00:00enA Framework for Analyzing Monetary Policy in an Economy with E-money2019-01-14Digital currencies and fintechMonetary policyStaff Working Paper 2019-1https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-1.pdfA Framework for Analyzing Monetary Policy in an Economy with E-moneyYu ZhuScott HendryJanuary 2019EE5E52The Secular Decline of Forecasted Interest Rates
https://www.bankofcanada.ca/2019/01/staff-analytical-note-2019-1/
Canadian interest rates show a secular decline since the 1980s. Long-term survey-based forecasts of interest rates also declined, but less so and were more gradual. Our model-based estimates show an endpoint shifting over time in three phases: a decline between 1990 and 1995, a period of stability between 1996 and 2007, and a further decline since 2008. The current endpoint estimate remains clouded with uncertainty; this is an active area of research.2019-01-11T14:05:40+00:00enThe Secular Decline of Forecasted Interest Rates2019-01-11