Research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T07:51:58+00:00The Economics of Cryptocurrencies—Bitcoin and Beyond
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-40/
Since the creation of Bitcoin in 2009, over 2,000 cryptocurrencies have been issued. We evaluate how well a cryptocurrency functions as a payment system.2019-09-27T15:41:20+00:00enThe Economics of Cryptocurrencies—Bitcoin and Beyond2019-09-27Digital currencies and fintechMonetary policyPayment clearing and settlement systemsStaff Working Paper 2019-40https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-40.pdfThe Economics of Cryptocurrencies—Bitcoin and BeyondJonathan ChiuThorsten KoepplSeptember 2019EE4E5LL5The BoC-BoE Sovereign Default Database: What’s New in 2019?
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-39/
Until recently, few efforts have been made to systematically measure and aggregate the nominal value of the different types of sovereign government debt in default. To help fill this gap, the Bank of Canada (BoC) developed a comprehensive database of sovereign defaults that is posted on its website and updated in partnership with the Bank of England (BoE).2019-09-26T19:22:08+00:00enThe BoC-BoE Sovereign Default Database: What’s New in 2019?2019-09-26Debt managementDevelopment economicsFinancial stabilityInternational financial marketsStaff Working Paper 2019-39https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-39.pdfThe BoC-BoE Sovereign Default Database: What’s New in 2019?David BeersPatrisha de Leon-ManlagnitSeptember 2019FF3F34GG1G10G14G15What Does Structural Analysis of the External Finance Premium Say About Financial Frictions?
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-38/
I use a structural vector autoregression (SVAR) with sign restrictions to provide conditional evidence on the behavior of the US external finance premium (EFP). The results indicate that the excess bond premium, a proxy for the EFP, reacts countercyclically to supply and monetary policy shocks and procyclically to demand shocks.2019-09-24T09:50:07+00:00enWhat Does Structural Analysis of the External Finance Premium Say About Financial Frictions?2019-09-24Economic modelsFinancial marketsRecent economic and financial developmentsStaff Working Paper 2019-38https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-38.pdfWhat Does Structural Analysis of the External Finance Premium Say About Financial Frictions?Jelena ZivanovicSeptember 2019EE3E32E4E44Bank Runs, Portfolio Choice, and Liquidity Provision
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-37/
After the financial crisis of 2007–09, many jurisdictions introduced new banking regulations to make banks more resilient and less likely to fail. These regulations included tighter limits for the quality and quantity of bank capital and introduced minimum standards for liquidity. But what was the impact of these changes?2019-09-23T13:24:17+00:00enBank Runs, Portfolio Choice, and Liquidity Provision2019-09-23Financial stabilityWholesale fundingStaff Working Paper 2019-37https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-37.pdfBank Runs, Portfolio Choice, and Liquidity ProvisionToni AhnertMahmoud ElaminSeptember 2019GG0G01G2G21Home Equity Extraction and Household Spending in Canada
https://www.bankofcanada.ca/2019/09/staff-analytical-note-2019-27/
We use rich microdata to measure home equity extraction in Canada and track its evolution over time. We find home equity extraction has been rising in recent years and has likely contributed materially to dynamics in household spending.2019-09-20T06:00:07+00:00enHome Equity Extraction and Household Spending in Canada2019-09-20No Double Standards: Quantifying the Impact of Standard Harmonization on Trade
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-36/
Product standards are omnipresent in industrialized societies. Though standardization can be beneficial for domestic producers, divergent product standards have been categorized as a major obstacle to international trade. This paper quantifies the effect of standard harmonization on trade flows and characterizes the extent to which it changes the cost and demand structure of exporting.2019-09-12T09:24:50+00:00enNo Double Standards: Quantifying the Impact of Standard Harmonization on Trade2019-09-12Econometric and statistical methodsInternational topicsStaff Working Paper 2019-36https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-36.pdfNo Double Standards: Quantifying the Impact of Standard Harmonization on TradeJulia SchmidtWalter SteingressSeptember 2019FF1F13F14F15LL1L15The Simple Economics of Global Fuel Consumption
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-35/
This paper presents a structural framework of the global oil market that relies on information on global fuel consumption to identify flow demand for oil. We show that under mild identifying assumptions, data on global fuel consumption help to provide comparatively sharp insights on elasticities and other key structural parameters of the global oil market.2019-09-06T17:19:29+00:00enThe Simple Economics of Global Fuel Consumption2019-09-06Economic modelsStaff Working Paper 2019-35https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-35.pdfThe Simple Economics of Global Fuel ConsumptionDoga BilginReinhard EllwangerSeptember 2019CC5C51LL7L71QQ4Q41Q43Exchange Rates, Retailers, and Importing: Theory and Firm-Level Evidence
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-34/
We develop a model with firm heterogeneity in importing and cross-border shopping among consumers. Exchange-rate appreciations lower the cost of imported goods, but also lead to more cross-border shopping; hence, the net impact on aggregate retail prices and sales is ambiguous.2019-09-06T16:57:05+00:00enExchange Rates, Retailers, and Importing: Theory and Firm-Level Evidence2019-09-06Exchange ratesInternational topicsService sectorStaff Working Paper 2019-34https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-34.pdfExchange Rates, Retailers, and Importing: Theory and Firm-Level EvidenceAlex ChernoffPatrick AlexanderSeptember 2019FF1F10F14LL8L81The Intergenerational Correlation of Employment: Is There a Role for Work Culture?
https://www.bankofcanada.ca/2019/09/staff-working-paper-2019-33/
We document a substantial positive correlation of employment status between mothers and their children in the United States, linking data from the National Longitudinal Survey of Youth 1979 (NLSY79) and the NLSY79 Children and Young Adults. After controlling for ability, education and wealth, a one-year increase in a mother’s employment is associated with six weeks more employment of her child on average.2019-09-05T13:25:53+00:00enThe Intergenerational Correlation of Employment: Is There a Role for Work Culture?2019-09-05Econometric and statistical methodsEconomic modelsLabour marketsStaff Working Paper 2019-33https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-33.pdfThe Intergenerational Correlation of Employment: Is There a Role for Work Culture?Gabriela GalassiDavid KollLukas MayrSeptember 2019EE2E24JJ2J21J22J6J62A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update
https://www.bankofcanada.ca/2019/09/staff-discussion-paper-2019-9/
We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria.2019-09-04T13:24:39+00:00enA Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update2019-09-04Inflation and pricesMonetary policy frameworkStaff Discussion Paper 2019-9https://www.bankofcanada.ca/wp-content/uploads/2019/09/sdp2019-9.pdfA Comprehensive Evaluation of Measures of Core Inflation in Canada: An UpdateHelen LaoCeciline SteynSeptember 2019EE3E31E5E52