E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:00:58+00:00Supporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-31/
While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face.2023-12-18T14:46:24+00:00enSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks2023-12-18Central bank researchClimate changeFinancial marketsStaff Discussion Paper 2023-31https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-31.pdfSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central BanksKaren McGuinnessDecember 2023DD5D53EE5E58E6E63GG3G32QQ5Q54International Portfolio Rebalancing and Fiscal Policy Spillovers
https://www.bankofcanada.ca/2023/11/staff-working-paper-2023-56/
We evaluate, both empirically and theoretically, the spillover effects that debt-financed fiscal policy interventions of the United States have on other economies. We consider a two-country model with international portfolio rebalancing effects. We show that US fiscal expansions would increase global long-term rates and hinder economic activity in the rest of the world.2023-11-01T15:05:01+00:00enInternational Portfolio Rebalancing and Fiscal Policy Spillovers2023-11-01Economic modelsFiscal policyInternational topicsStaff Working Paper 2023-56https://www.bankofcanada.ca/wp-content/uploads/2023/11/swp2023-56.pdfInternational Portfolio Rebalancing and Fiscal Policy SpilloversSami AlpandaUluc AysunSerdar KabacaNovember 2023EE3E32E6E62FF4F41F44The Macroeconomic Effects of Debt Relief Policies During Recessions
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-48/
A large-scale reduction in mortgage principal can strengthen a recovery, support house prices and lower foreclosures. The nature of the intervention shapes its impact, which rests on how resources are redistributed across households. The availability of bankruptcy on unsecured debt changes the response to large-scale mortgage relief by reducing precautionary savings.2023-08-28T11:39:12+00:00enThe Macroeconomic Effects of Debt Relief Policies During Recessions2023-08-28Business fluctuations and cyclesCredit and credit aggregatesDebt managementHousingStaff Working Paper 2023-48https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-48.pdfThe Macroeconomic Effects of Debt Relief Policies During RecessionsSoyoung LeeAugust 2023EE2E21E3E32E6What People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey Experiment
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-36/
We conduct a large-scale survey to shed light on what people believe about public finance. An experiment demonstrates that central bank communication can persistently shift views on monetary financing. It further suggests that views on monetary financing impact support for fiscal discipline.2023-06-14T09:52:58+00:00enWhat People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey Experiment2023-06-14Central bank researchFiscal policyMonetary policyStaff Working Paper 2023-36https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-36.pdfWhat People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey ExperimentCars HommesJulien PinterIsabelle SalleJune 2023CC8C83EE5E58E6E60E62E7E70GG5G53HH3H31SME Failures Under Large Liquidity Shocks: An Application to the COVID-19 Crisis
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-32/
We study the effects of financial frictions on firm exit when firms face large liquidity shocks. We develop a simple model of firm cost-minimization that introduces a financial friction that limits firms’ borrowing capacity to smooth temporary shocks to liquidity.2023-06-09T09:39:02+00:00enSME Failures Under Large Liquidity Shocks: An Application to the COVID-19 Crisis2023-06-09Coronavirus disease (COVID-19)Firm dynamicsInternational topicsStaff Working Paper 2023-32https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-32.pdfStaff Working Paper 2023-32Pierre-Olivier GourinchasŞebnem Kalemli-ÖzcanVeronika PenciakovaNicholas SanderJune 2023DD2D21D22EE6E65HH8H81Understanding Inflation Dynamics: The Role of Government Expenditures
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-30/
We study the impact government expenditure has on inflation. We find that changes in government expenditure account for a substantial portion of inflation variations. We also find that inflation and inflation expectations respond negatively to fiscal spending shocks, reaffirming the supply-side channel through which inflation responds to fiscal expansions.2023-06-09T08:36:36+00:00enUnderstanding Inflation Dynamics: The Role of Government Expenditures2023-06-09Central bank researchFiscal policyInflation and pricesStaff Working Paper 2023-30https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-30.pdfStaff Working Paper 2023-30Chang LiuYinxi XieJune 2023EE3E6E62E63The Impact of Unemployment Insurance and Unsecured Credit on Business Cycles
https://www.bankofcanada.ca/2023/04/staff-working-paper-2023-22/
This paper studies how unsecured consumer credit impacts the extent to which unemployment insurance (UI) policies smooth aggregate consumption fluctuations over the business cycle. Using a general equilibrium real business cycle model, I find that unsecured credit amplifies the extent to which UI smooths cyclical consumption fluctuations.2023-04-13T11:15:08+00:00enThe Impact of Unemployment Insurance and Unsecured Credit on Business Cycles2023-04-13Business fluctuations and cyclesCredit and credit aggregatesEconomic modelsFiscal policyLabour marketsStaff Working Paper 2023-22https://www.bankofcanada.ca/wp-content/uploads/2023/04/swp2023-22.pdfStaff Working Paper 2023-22Michael IrwinApril 2023EE2E21E24E3E32E4E44E6E62Fiscal Stimulus and Skill Accumulation over the Life Cycle
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-9/
Using micro data from the U.S. Consumer Expenditure Survey and Current Population Survey, I document that government spending shocks affect individuals differently over the life cycle.2023-01-30T10:26:17+00:00enFiscal Stimulus and Skill Accumulation over the Life Cycle2023-01-30Business fluctuations and cyclesFiscal policyProductivityStaff Working Paper 2023-9https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-9.pdfFiscal Stimulus and Skill Accumulation over the Life CycleLaure SimonJanuary 2023DD1D12D15EE2E21E6E62JJ1J11J2J24Stress Relief? Funding Structures and Resilience to the Covid Shock
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-7/
Funding structures affected the amount of financial stress different countries and sectors experienced during the spread of COVID-19 in early 2020. Policy responses targeting specific vulnerabilities were more effective at mitigating this stress than those supporting banks or the economy more broadly.2023-01-30T08:46:15+00:00enStress Relief? Funding Structures and Resilience to the Covid Shock2023-01-30Coronavirus disease (COVID-19)Exchange ratesFinancial institutionsFinancial stabilityFinancial system regulation and policiesInternational topicsStaff Working Paper 2023-7https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-7.pdfStress Relief? Funding Structures and Resilience to the Covid ShockKristin ForbesChristian FriedrichDennis ReinhardtJanuary 2023EE4E44E6E65FF3F31F36F4F42GG1G18G2G23G3G38(Un)Conventional Monetary and Fiscal Policy
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-6/
We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments.2023-01-26T09:35:25+00:00en(Un)Conventional Monetary and Fiscal Policy2023-01-26Fiscal policyMonetary policyStaff Working Paper 2023-6https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-6.pdfStaff Working Paper 2023-6Jing Cynthia WuYinxi XieJanuary 2023EE4E6E61E62E63