Research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T10:39:24+00:002021 Methods-of-Payment Survey Report
https://www.bankofcanada.ca/2022/12/staff-discussion-paper-2022-23/
We present results from the 2021 Methods-of-Payment Survey, including updated payment shares. We highlight long-term trends and provide additional context for results with respect to the COVID-19 pandemic.2022-12-28T11:30:18+00:00en2021 Methods-of-Payment Survey Report2022-12-28Bank notesCoronavirus disease (COVID-19)Digital currencies and fintechFinancial servicesStaff Discussion Paper 2022-23https://www.bankofcanada.ca/wp-content/uploads/2022/12/sdp2022-23.pdfStaff Discussion Paper 2022-23Christopher HenryMatthew ShimodaJulia ZhuDecember 2022DD8D83EE4E41Improving the Efficiency of Payments Systems Using Quantum Computing
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-53/
We develop an algorithm and run it on a hybrid quantum annealing solver to find an ordering of payments that reduces the amount of system liquidity necessary without substantially increasing payment delays.2022-12-22T14:14:19+00:00enImproving the Efficiency of Payments Systems Using Quantum Computing2022-12-22Digital currencies and fintechFinancial institutionsFinancial servicesFinancial system regulation and policiesPayment clearing and settlement systemsStaff Working Paper 2022-53https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-53.pdfImproving the Efficiency of Payments Systems Using Quantum ComputingChristopher McMahonDonald McGillivrayAjit DesaiFrancisco RivadeneyraJean-Paul LamThomas LoDanica MarsdenVladimir SkavyshDecember 2022CC6C61C63DD8D83EE4E42E5E58Are Temporary Oil Supply Shocks Real?
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-52/
Hurricanes disrupt oil production in the Gulf of Mexico because producers shut in oil platforms to safeguard lives and prevent damage. We examine the effects of these temporary oil supply shocks on real economic activity in the United States.2022-12-20T14:27:55+00:00enAre Temporary Oil Supply Shocks Real?2022-12-20Business fluctuations and cyclesInflation and pricesStaff Working Paper 2022-52https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-52.pdfAre Temporary Oil Supply Shocks Real?Johan BrannlundGeoffrey R. DunbarReinhard EllwangerDecember 2022EE3E31E32QQ3Q31Q4Q41Q43Financial Constraints and Corporate Investment in China
https://www.bankofcanada.ca/2022/12/staff-discussion-paper-2022-22/
Financial constraints deter firms from pursuing optimal investment plans. In China, we find privately owned firms face greater financial constraints than state-owned enterprises (SOEs). This can be explained by our finding that lenders appear less concerned about the credit risk of SOEs, which causes distortions in the allocation of credit.2022-12-20T13:46:58+00:00enFinancial Constraints and Corporate Investment in China2022-12-20Financial marketsFirm dynamicsStaff Discussion Paper 2022-22https://www.bankofcanada.ca/wp-content/uploads/2022/12/sdp2022-22.pdfFinancial Constraints and Corporate Investment in ChinaKun MoMichel SoudanDecember 2022EE2E22GG1G3CANVAS: A Canadian Behavioral Agent-Based Model
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-51/
The Bank of Canada’s current suite of models faces challenges in addressing network effects that integrate household and firm-level heterogeneity and their behaviours. We develop CANVAS, a Canadian behavioural agent-based model to contribute to the Bank’s next-generation modelling effort. CANVAS improves forecasting performance and expands capacity for model-based scenario analysis.2022-12-20T08:40:00+00:00enCANVAS: A Canadian Behavioral Agent-Based Model2022-12-20Central bank researchEconometric and statistical methodsEconomic modelsFirm dynamicsInflation and pricesStaff Working Paper 2022-51https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-51.pdfCANVAS: A Canadian Behavioral Agent-Based ModelCars HommesMario HeSebastian PolednaMelissa SiqueiraYang ZhangDecember 2022CDD2D22D8D83EE1E17Potential benefits and key risks of fiat-referenced cryptoassets
https://www.bankofcanada.ca/2022/12/staff-analytical-note-2022-20/
Cryptoassets that reference a national currency (commonly known as stablecoins) aim to peg their value to the reference currency and typically use a reserve of traditional financial assets to maintain the peg. The market value of these fiat-referenced cryptoassets has grown more than thirtyfold between early 2020 and mid-2022. We explore some of their potential benefits and key risks.2022-12-19T15:00:05+00:00enPotential benefits and key risks of fiat-referenced cryptoassets2022-12-19The Relative Benefits and Risks of Stablecoins as a Means of Payment: A Case Study Perspective
https://www.bankofcanada.ca/2022/12/staff-discussion-paper-2022-21/
Our paper contributes to the discussion about the utility of stablecoins for retail payments through an objective, evidence-based approach that compares stablecoins with traditional retail payment methods. The paper also provides insights that could be useful in the design of central bank digital currencies.2022-12-19T10:33:42+00:00enThe Relative Benefits and Risks of Stablecoins as a Means of Payment: A Case Study Perspective2022-12-19Digital currencies and fintechPayment clearing and settlement systemsStaff Discussion Paper 2022-21https://www.bankofcanada.ca/wp-content/uploads/2022/12/sdp2022-21.pdfThe Relative Benefits and Risks of Stablecoins as a Means of Payment: A Case Study PerspectiveAnnetta HoSriram DarbhaYuliya GorelkinaAlejandro GarcíaDecember 2022DD7D78OO3O38Understanding Post-COVID Inflation Dynamics
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-50/
We propose a macroeconomic model with a nonlinear Phillips curve that has a flat slope when inflationary pressures are subdued and steepens when inflationary pressures are elevated. Our model can generate more sizable inflation surges due to cost-push and demand shocks than a standard linearized model when inflation is high.2022-12-13T10:42:51+00:00enUnderstanding Post-COVID Inflation Dynamics2022-12-13Business fluctuations and cyclesCentral bank researchCoronavirus disease (COVID-19)Economic modelsInflation and pricesInflation: costs and benefitsMonetary policyMonetary policy implementationStaff Working Paper 2022-50https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-50.pdfStaff Working Paper 2022-50Martin HardingJesper LindéMathias TrabandtDecember 2022EE3E30E31E32E37E4E44E5E52Monetary Policy, Credit Constraints and SME Employment
https://www.bankofcanada.ca/2022/12/staff-working-paper-2022-49/
We revisit an old question: how do financial constraints affect the transmission of monetary policy to the real economy? To answer this question, we propose a simple empirical strategy that combines firm-level employment and balance sheet data, identified monetary policy shocks and survey data on financing activities.2022-12-09T13:01:12+00:00enMonetary Policy, Credit Constraints and SME Employment2022-12-09Credit and credit aggregatesEconometric and statistical methodsFirm dynamicsLabour marketsMonetary policyStaff Working Paper 2022-49https://www.bankofcanada.ca/wp-content/uploads/2022/12/swp2022-49.pdfMonetary Policy, Credit Constraints and SME EmploymentJulien ChampagneÉmilien Gouin-BonenfantDecember 2022EE2E3E4E43E5E52GG3Regulatory Requirements of Banks and Arbitrage in the Post-Crisis Federal Funds Market
https://www.bankofcanada.ca/2022/11/staff-working-paper-2022-48/
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks, and arbitrage opportunities created by limited access to the facility granting interest on excess reserves.2022-11-28T14:49:49+00:00enRegulatory Requirements of Banks and Arbitrage in the Post-Crisis Federal Funds Market2022-11-28Central bank researchEconomic modelsFinancial institutionsFinancial marketsFinancial stabilityFinancial system regulation and policiesWholesale fundingStaff Working Paper 2022-48https://www.bankofcanada.ca/wp-content/uploads/2022/11/swp2022-48.pdfStaff Working Paper 2022-48Rodney J. GarrattSofia PriazhkinaNovember 2022EE4E42E5E58GG2G28