F3 - International Finance - Bank of Canada
https://www.bankofcanada.ca/rss-feeds/
Bank of Canada RSS Feedsen2024-03-28T20:36:31+00:00The Role of International Financial Integration in Monetary Policy Transmission
https://www.bankofcanada.ca/2024/02/staff-working-paper-2024-3/
We propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We study the implications of financial integration on monetary policy transmission. Among various aspects of financial integration, the bond duration plays a major role. These results hold for conventional and unconventional monetary policies.2024-02-06T14:47:16+00:00enThe Role of International Financial Integration in Monetary Policy Transmission2024-02-06Central bank researchInternational financial marketsMonetary policy transmissionStaff Working Paper 2024-3https://www.bankofcanada.ca/wp-content/uploads/2024/02/swp2024-3.pdfThe Role of International Financial Integration in Monetary Policy TransmissionJing Cynthia WuYinxi XieJi ZhangFebruary 2024EE4E44E5E52FF3F36F4F42International Economic Sanctions and Third-Country Effects
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-46/
We study the transmission and third-country effects of international sanctions. A sanctioned country’s losses are mitigated, and the sanctioning country’s losses amplified, if a third country does not join the sanctions, but the third country benefits from not joining.2023-08-23T14:39:57+00:00enInternational Economic Sanctions and Third-Country Effects2023-08-23Economic modelsExchange ratesInternational topicsStaff Working Paper 2023-46https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-46.pdfStaff Working Paper 2023-46Fabio GhironiDaisoon KimGalip Kemal OzhanAugust 2023FF3F31F4F41F42F5F51A Behavioral New Keynesian Model of a Small Open Economy Under Limited Foresight
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-44/
This paper studies exchange rate dynamics by incorporating bounded rationality, that is, limited foresight, in a small open-economy model. This behavior of limited foresight helps explain several observations and puzzles in the data of exchange rate movements.2023-08-17T08:56:50+00:00enA Behavioral New Keynesian Model of a Small Open Economy Under Limited Foresight2023-08-17Business fluctuations and cyclesExchange ratesInternational topicsMonetary policy transmissionStaff Working Paper 2023-44https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-44.pdfStaff Working Paper 2023-44Seunghoon NaYinxi XieAugust 2023EE4E43E7E70FF3F31F4F41BoC–BoE Sovereign Default Database: What’s new in 2023?
https://www.bankofcanada.ca/2023/07/staff-analytical-note-2023-10/
The BoC–BoE database of sovereign debt defaults, published and updated annually by the Bank of Canada and the Bank of England, provides comprehensive estimates of stocks of government obligations in default. The 2023 edition includes a new section about the characteristics of sovereign defaults and provides new visuals showing regional debt in default.2023-07-31T10:00:22+00:00enBoC–BoE Sovereign Default Database: What’s new in 2023?2023-07-31BoC–BoE Sovereign Default Database: Appendix and References
https://www.bankofcanada.ca/2023/07/technical-report-125/
Since 2014, the Bank of Canada (BoC) has maintained a comprehensive database of sovereign defaults to systematically measure and aggregate the nominal value of the different types of sovereign government debt in default. The database is posted on the BoC’s website and is updated annually in partnership with the Bank of England (BoE).2023-07-28T11:13:28+00:00enBoC–BoE Sovereign Default Database: Appendix and References2023-07-28Debt managementDevelopment economicsFinancial stabilityInternational financial marketsTechnical Report 2023-125https://www.bankofcanada.ca/wp-content/uploads/2023/07/tr125.pdfTechnical Report 2023-125David BeersObiageri NdukweAlex CharronJuly 2023FF3F34GG1G10G14G15BoC–BoE Sovereign Default Database: Methodology and Assumptions
https://www.bankofcanada.ca/2023/07/technical-report-124/
The Bank of Canada (BoC), in partnership with the Bank of England (BoE), developed a comprehensive database of sovereign defaults in 2014. The database is posted on the Bank of Canada’s website and updated annually. The BoC–BoE database draws on datasets published by various public and private sector sources. It combines elements of these, together with new information, to develop comprehensive estimates of stocks of government obligations in default.2023-07-28T11:04:38+00:00enBoC–BoE Sovereign Default Database: Methodology and Assumptions2023-07-28Debt managementDevelopment economicsFinancial stabilityInternational financial marketsTechnical Report 2023-124https://www.bankofcanada.ca/wp-content/uploads/2023/07/tr124.pdfTechnical Report 2023-124David BeersObiageri NdukweAlex CharronJuly 2023FF3F34GG1G10G14G15The Macroeconomic Effects of Portfolio Equity Inflows
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-31/
I provide evidence that portfolio equity inflows can have expansionary effects on GDP and inflation if not offset by monetary policy. I use a shift-share instrument to estimate equity inflows based on plausibly exogenous timing of inflows into mutual funds with heterogeneous country portfolios.2023-06-09T09:26:14+00:00enThe Macroeconomic Effects of Portfolio Equity Inflows2023-06-09Business fluctuations and cyclesInternational financial marketsInternational topicsMonetary policyStaff Working Paper 2023-31https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-31.pdfThe Macroeconomic Effects of Portfolio Equity InflowsNick SanderJune 2023EE3E32FF3F32F4F44Exporting and Investment Under Credit Constraints
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-10/
We examine the relationship between firms’ performance and credit constraints affecting export market entry. Using administrative Canadian firm-level data, our findings show that new exporters (a) increase their productivity, (b) raise their leverage ratio and (c) increase investment. We estimate that 48 percent of Canadian manufacturers face binding credit constraints when deciding whether to enter export markets.2023-02-10T14:26:13+00:00enExporting and Investment Under Credit Constraints2023-02-10Econometric and statistical methodsFirm dynamicsInternational topicsProductivityStaff Working Paper 2023-10https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-10.pdfExporting and Investment Under Credit ConstraintsKim HuynhRobert PetruniaJoel RodrigueWalter SteingressFebruary 2023FF1F10F14F3F36GG2G20G28G3G32Stress 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 2023EE4E44E6E65FF3F31F36F4F42GG1G18G2G23G3G38Stagflation and Topsy-Turvy Capital Flows
https://www.bankofcanada.ca/2022/11/staff-working-paper-2022-46/
Unregulated capital flows are likely excessive during a stagflation episode, owing to a macroeconomic externality operating through the economy’s supply side. Inflows raise domestic wages and cause unwelcome upward pressure on firm costs, yet market forces likely generate such inflows. Optimal capital flow management instead requires net outflows.2022-11-10T10:24:04+00:00enStagflation and Topsy-Turvy Capital Flows2022-11-10Inflation and pricesInternational financial marketsInternational topicsMonetary policyStaff Working Paper 2022-46https://www.bankofcanada.ca/wp-content/uploads/2022/11/swp2022-46.pdfStaff Working Paper 2022-46Julien BenguiLouphou CoulibalyNovember 2022DD6D62EE5E52FF3F32F38F4F41