Central bank research - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T12:14:39+00:00CANVAS: 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 2022CDD2D22D8D83EE1E17Understanding 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 2022EE3E30E31E32E37E4E44E5E52Regulatory 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 2022EE4E42E5E58GG2G28Canada’s Beveridge curve and the outlook for the labour market
https://www.bankofcanada.ca/2022/11/staff-analytical-note-2022-18/
Canada’s labour market is tight but beginning to ease. Unemployment will likely rise in turn, but the economy can avoid a recessionary surge given current conditions. Higher unemployment would nonetheless be material, especially for those directly impacted.2022-11-17T14:22:04+00:00enCanada’s Beveridge curve and the outlook for the labour market2022-11-17Getting back to stable prices and a balanced jobs market
https://www.bankofcanada.ca/2022/11/getting-back-to-stable-prices-and-a-balanced-jobs-market/
Governor Tiff Macklem discusses the relationship between inflation and employment and how the Bank of Canada is working to cool an overheated economy.2022-11-10T15:13:12+00:00Getting back to stable prices and a balanced jobs market2022-11-10Tiff MacklemRestoring labour market balance and price stability
https://www.bankofcanada.ca/2022/11/restoring-labour-market-balance-and-price-stability/
Governor Tiff Macklem outlines the link between high inflation and tight labour markets. He explains how the Bank is working to rebalance the labour market and discusses how structural changes may influence the supply of workers in Canada.2022-11-10T11:55:38+00:00Restoring labour market balance and price stability2022-11-10Tiff MacklemWhat’s happening to inflation and why it matters
https://www.bankofcanada.ca/2022/10/whats-happening-to-inflation-and-why-it-matters/
Governor Tiff Macklem discusses how inflation has evolved in recent months and explains what the Bank is watching as it takes action to return inflation to target.2022-10-06T11:35:27+00:00What’s happening to inflation and why it matters2022-10-06Tiff MacklemRestoring price stability for all Canadians
https://www.bankofcanada.ca/2022/10/restoring-price-stability-for-all-canadians/
Governor Tiff Macklem explains how inflation in Canada reflects more and more what’s happening with domestic demand and what the Bank is watching as it works to bring inflation back to the 2% target.2022-10-06T11:35:08+00:00Restoring price stability for all Canadians2022-10-06Tiff MacklemArchetypes for a retail CBDC
https://www.bankofcanada.ca/2022/10/staff-analytical-note-2022-14/
A variety of technology designs could support retail central bank digital currency (CBDC) systems. We develop five archetypes of CBDC systems, outline their characteristics and discuss their trade-offs. This work serves as a framework to analyze and compare different designs, independent of vendor, platform and implementation.2022-10-05T12:15:01+00:00enArchetypes for a retail CBDC2022-10-05Harnessing the benefit of state-contingent forward guidance
https://www.bankofcanada.ca/2022/09/staff-analytical-note-2022-13/
A low level of the neutral rate of interest increases the likelihood that a central bank’s policy rate will reach its effective lower bound (ELB) in future economic downturns. In a low neutral rate environment, using an extended monetary policy toolkit including forward guidance helps address the ELB challenge. Using the Bank’s Terms-of-Trade Economic Model, we assess the benefits and limitations of a state-contingent forward guidance implemented within a flexible inflation targeting framework.2022-09-26T11:27:58+00:00enHarnessing the benefit of state-contingent forward guidance2022-09-26