Staff working papers - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T09:19:06+00:00Consumer Credit with Over-optimistic Borrowers
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-57/
When lenders cannot directly identify behavioural and rational borrowers, they use type scoring to track the likelihood of a borrower’s type. This leads to the partial pooling of borrowers, which results in rational borrowers subsidizing borrowing costs for behavioural borrowers. This, in turn, reduces the effectiveness of regulatory policies that target mistakes by behavioural borrowers.2020-12-30T08:51:56+00:00enConsumer Credit with Over-optimistic Borrowers2020-12-30Credit and credit aggregatesCredit risk managementFinancial system regulation and policiesStaff Analytical Note 2020-57https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-57.pdfStaff Analytical Note 2020-57Florian ExlerIgor LivshitsJames (Jim) C. MacGeeMichèle TertiltDecember 2020EE2E21E4E49GG1G18KK3K35Losing Contact: The Impact of Contactless Payments on Cash Usage
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-56/
Contactless payment cards are a competitive alternative to cash. Using Canadian panel data from 2010 to 2017, this study investigates whether contactless credit cards are an important contributor to the decline in the transactional use of cash. 2020-12-29T09:32:24+00:00enLosing Contact: The Impact of Contactless Payments on Cash Usage2020-12-29Bank notesDigital currencies and fintechEconometric and statistical methodsFinancial servicesStaff Working Paper 2020-56https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-56.pdfStaff Working Paper 2020-56Marie-Hélène FeltDecember 2020CC3C33DD1D12EE4E41Strategic Uncertainty in Financial Markets: Evidence from a Consensus Pricing Service
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-55/
We look at the informational content of consensus pricing in opaque over-the-counter markets. We show that the availability of price data informs participants mainly about other participants’ valuations, rather than about the value of a financial security.2020-12-18T11:28:49+00:00enStrategic Uncertainty in Financial Markets: Evidence from a Consensus Pricing Service2020-12-18Financial institutionsFinancial marketsMarket structure and pricingStaff Working Paper 2020-55https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-55.pdfStrategic Uncertainty in Financial Markets: Evidence from a Consensus Pricing ServiceLerby ErgunAndreas UthemannDecember 2020CC5C58DD5D53D8D83GG1G12G14Labor Market Policies During an Epidemic
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-54/
We study the labour market and welfare effects of expanding unemployment insurance benefits and introducing payroll subsidies during the COVID-19 pandemic. We find that both policies are complementary and are beneficial to different types of workers. Payroll subsidies preserve the employment of workers in highly productive jobs, while unemployment insurance replaces lost income for workers who experience inevitable job loss.2020-12-16T08:59:45+00:00enLabor Market Policies During an Epidemic2020-12-16Business fluctuations and cyclesCoronavirus disease (COVID-19)Fiscal policyLabour marketsStaff Working Paper 2020-54https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-54.pdfStaff Working Paper 2020-54Serdar BirinciFatih KarahanYusuf MercanKurt SeeDecember 2020EE2E24E6E62JJ6J64Safe Payments
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-53/
In a cashless economy, would the private sector invest in the optimal level of safety in a deposit-based payment system? In general, because of externalities, the answer is no. While the private sector could over- or under-invest in safety, the government can use taxes or subsidies to correct private incentives.2020-12-11T07:54:12+00:00enSafe Payments2020-12-11Central bank researchDigital currencies and fintechFinancial institutionsPayment clearing and settlement systemsStaff Working Paper 2020-53https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-53.pdfSafe PaymentsJonathan ChiuMohammad DavoodalhosseiniJanet Hua JiangYu ZhuDecember 2020EE4E42E5E50GG2G21The Determinants of Consumers’ Inflation Expectations: Evidence from the US and Canada
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-52/
We compare the determinants of consumer inflation expectations in the US and Canada by analyzing two current surveys. We find that Canadian consumers rely more on professional forecasts and the history of actual inflation when forming their expectations, while US consumers rely more on their own lagged expectations.2020-11-30T10:31:53+00:00enThe Determinants of Consumers’ Inflation Expectations: Evidence from the US and Canada2020-11-30Central bank researchEconometric and statistical methodsInflation and pricesInflation targetsStaff Working Paper 2020-52https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-52.pdfThe Determinants of Consumers’ Inflation Expectations: Evidence from the US and CanadaCharles BellemareRolande Kpekou TossouKevin MoranNovember 2020CC3C33DD8D83D84EE3E31The Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and Savings
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-51/
The impact of COVID-19 on Canadian households’ debt and unplanned savings varies by household income. Low-income and high-income households accrued unplanned savings, while middle-income households tended to accumulate more debt.2020-11-27T10:28:16+00:00enThe Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and Savings2020-11-27Business fluctuations and cyclesCoronavirus disease (COVID-19)Financial stabilityStaff Working Paper 2020-51https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-51.pdfThe Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and SavingsJames (Jim) C. MacGeeThomas Michael PughKurt SeeNovember 2020EE2E21E24GG5G51A Macroeconomic Model of an Epidemic with Silent Transmission and Endogenous Self-isolation
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-50/
We study the interaction between epidemics and economic decisions in a model that has silent transmission of the virus. We find that rational behaviour strongly diminishes the severity of the epidemic but worsens the economic recession. We also find that the detection and isolation of not only symptomatic individuals but also those who are infected and asymptomatic or mildly symptomatic can reduce the severity of the recession caused by the pandemic.2020-11-26T14:35:20+00:00enA Macroeconomic Model of an Epidemic with Silent Transmission and Endogenous Self-isolation2020-11-26Coronavirus disease (COVID-19)Economic modelsStaff Working Paper 2020-50https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-50.pdfAntonio Diez de los RiosNovember 2020EE1HH0II1Optimal Quantitative Easing in a Monetary Union
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-49/
How should a central bank conduct quantitative easing (QE) in a monetary union when regions differ in their size and portfolio characteristics? Optimal QE policy suggests allocating greater purchases from the region that faces stronger portfolio frictions, and not necessarily according to each region’s size.2020-11-24T09:04:14+00:00enOptimal Quantitative Easing in a Monetary Union2020-11-24Business fluctuations and cyclesEconomic modelsMonetary policyStaff Working Paper 2020-49https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-49.pdfStaff Working Paper 2020-49Serdar KabacaRenske MaasKostas MavromatisRomanos PriftisNovember 2020EE4E43E5E52E58Short-Run Dynamics in a Search-Theoretic Model of Monetary Exchange
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-48/
We study the short-run effects of monetary policy using a search-theoretic monetary model in which agents are subject to idiosyncratic shocks and aggregate monetary shocks.2020-11-18T15:23:16+00:00enShort-Run Dynamics in a Search-Theoretic Model of Monetary Exchange2020-11-18Inflation and pricesMonetary policyMonetary policy transmissionStaff Working Paper 2020-48https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-48.pdfStaff Working Paper 2020-48Jonathan ChiuMiguel MolicoNovember 2020EE4E40E5E50