Research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T21:26:59+00:00Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-15/
How do firms change their employment decisions when tax benefits for low-earning workers are expanded? Some firms increase employment overall, whereas others replace high-earning workers with low-earning workers, according to German linked employer-employee data.2021-03-29T11:30:36+00:00enLabor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform2021-03-29Economic modelsFirm dynamicsLabour marketsStaff Working Paper 2021-15https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-15.pdfStaff Working Paper 2021-15Gabriela GalassiMarch 2021EE2E24E6E64HH2H20H24H3H32II3I38JJ2J23J3J38What cured the TSX Equity index after COVID-19?
https://www.bankofcanada.ca/2021/03/staff-analytical-note-2021-3/
The TSX index rose by 9.5 percent in November 2020, adding large gains to an already sharp V-shaped recovery. The economic outlook improved at that time as well. We ask whether the stock market gains since last autumn are due to improving forecasts of firms’ earnings.2021-03-26T14:00:42+00:00enWhat cured the TSX Equity index after COVID-19?2021-03-26Occasionally Binding Constraints in Large Models: A Review of Solution Methods
https://www.bankofcanada.ca/2021/03/staff-discussion-paper-2021-5/
Solving macroeconomic models is difficult. One challenge is the occasionally binding constraint of the zero lower bound on nominal interest rates. This paper reviews various ways to solve models that include this feature.2021-03-23T10:10:08+00:00enOccasionally Binding Constraints in Large Models: A Review of Solution Methods2021-03-23Business fluctuations and cyclesEconomic modelsStaff Discussion Paper 2021-5https://www.bankofcanada.ca/wp-content/uploads/2021/03/sdp2021-5.pdfStaff Discussion Paper 2021-5Jonathan SwarbrickMarch 2021CC6Non-bank financial intermediation in Canada: a pulse check
https://www.bankofcanada.ca/2021/03/staff-analytical-note-2021-2/
The Canadian non-bank financial intermediation (NBFI) sector saw strong growth in 2018 and 2019. In 2020, COVID‑19 caused a financial shock. We provide a preliminary analysis on the impact of COVID‑19 on the sector as well as an update on its growth.2021-03-23T10:00:41+00:00enNon-bank financial intermediation in Canada: a pulse check2021-03-23Secular Economic Changes and Bond Yields
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-14/
We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.2021-03-19T12:59:13+00:00enSecular Economic Changes and Bond Yields2021-03-19Asset pricingEconometric and statistical methodsInterest ratesMonetary policy and uncertaintyPotential outputStaff Working Paper 2021-14https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-14.pdfSecular Economic Changes and Bond YieldsBruno FeunouJean-Sébastien FontaineMarch 2021EE4E43GG1G12Debt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-19
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-13/
During the COVID-19 pandemic, Canadian financial institutions offered debt-relief programs to help borrowers cope with job losses and economic insecurity. We consider the low take-up rates for these programs and suggest that to be effective, such programs must be visible and easy to use.2021-03-16T08:46:16+00:00enDebt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-192021-03-16Coronavirus disease (COVID-19)Credit and credit aggregatesDebt managementStaff Working Paper 2021-13https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-13.pdfDebt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-19Jason AllenRobert ClarkShaoteng LiNicolas VincentMarch 2021GG3G31HH5Complementarities Between Fiscal Policy and Monetary Policy—Literature Review
https://www.bankofcanada.ca/2021/03/staff-discussion-paper-2021-4/
This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.2021-03-15T10:01:57+00:00enComplementarities Between Fiscal Policy and Monetary Policy—Literature Review2021-03-15Fiscal policyMonetary policyStaff Discussion Paper 2021-4https://www.bankofcanada.ca/wp-content/uploads/2021/03/sdp2021-4.pdfStaff Discussion Paper 2021-4Wei DongGeoffrey R. DunbarChristian FriedrichDmitry MatveevRomanos PriftisLin ShaoMarch 2021EE5E52E58E6E62E63Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-12/
How do banks adjust their loan rate markup in response to macroeconomic shocks?2021-03-12T13:36:34+00:00enImperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework2021-03-12Business fluctuations and cyclesFinancial institutionsInterest ratesStaff Working Paper 2021-12https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-12.pdfStaff Working Paper 2021-12Jiaqi LiMarch 2021EE3E32E4E44GG2G21LL1L13A Generalized Endogenous Grid Method for Default Risk Models
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-11/
Models with default options are hard to solve. We propose an extension of the endogenous grid method that solves default risk models more efficiently and accurately.2021-03-12T13:14:25+00:00enA Generalized Endogenous Grid Method for Default Risk Models2021-03-12Credit and credit aggregatesCredit risk managementStaff Working Paper 2021-11https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-11.pdfStaff Working Paper 2021-11Youngsoo JangSoyoung LeeMarch 2021CC6C63EE3E37Monetary Policy Pass-Through with Central Bank Digital Currency
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-10/
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.2021-03-12T10:23:25+00:00enMonetary Policy Pass-Through with Central Bank Digital Currency2021-03-12Digital currencies and fintechMonetary policy transmissionStaff Working Paper 2021-10https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-10.pdfStaff Working Paper 2021-10Janet Hua JiangYu ZhuMarch 2021EE5E50E52