Financial stability
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On Causal Networks of Financial Firms: Structural Identification via Non-parametric Heteroskedasticity
Banks’ business interactions create a network of relationships that are hidden in the correlations of bank stock returns. But for policy interventions, we need causality to understand how the network changes. Thus, this paper looks for the causal network anticipated by investors. -
October 8, 2020
COVID‑19 and the financial system
Governor Tiff Macklem discusses financial risks from the COVID-19 pandemic that are affecting our economy and that could shape how well it recovers. He also talks about financial risks from climate change. -
October 8, 2020
From COVID to climate—the importance of risk management
Governor Tiff Macklem discusses the importance of financial risk management as Canada recovers from the pandemic, and as it deals with issues like climate change.