Posts

• October 7, 2021

  Investing in global progress

  Speech summary Tiff Macklem Council on Foreign Relations Washington, D.C.

  Governor Tiff Macklem makes the case for greater cooperation to shape a stronger international monetary and financial system.

  Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Development economics, Exchange rate regimes, Financial system regulation and policies, Foreign reserves management, International financial markets, International topics, Trade integration

• Assessing Labour Market Slack for Monetary Policy

  Staff Discussion Paper 2021-15 Erik Ens, Laurence Savoie-Chabot, Kurt See, Shu Lin Wee

  Measuring labour market slack is essential for central banks: without full employment in the economy, inflation will not stay close to target. We propose a comprehensive approach to assessing labour market slack that reflects the complexity and diversity of the labour market.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Business fluctuations and cycles, Coronavirus disease (COVID-19), Econometric and statistical methods, Labour markets, Monetary policy JEL Code(s): E, E2, E24, J, J2, J21, J6

• Foreign Exchange Fixings and Returns Around the Clock

  Staff Working Paper 2021-48 Ingomar Krohn, Philippe Mueller, Paul Whelan

  We document a new empirical finding in the foreign exchange market: currency returns show systematic reversals around the benchmark fixings. Specifically, the US dollar, on average, appreciates in the hours before fixes and depreciates after fixes.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Financial markets, Market structure and pricing JEL Code(s): F, F3, F31, G, G1, G15

• Energy Efficiency and Fluctuations in CO2 Emissions

  Staff Working Paper 2021-47 Soojin Jo, Lilia Karnizova

  Carbon dioxide emissions have been commonly modelled as rising and falling with total output. Yet many factors, such as energy-efficiency improvements and shifts to cleaner energy, can break this relationship. We evaluate these factors using US data and find that changes in energy efficiency of consumption goods explain a significant proportion of emissions fluctuations. This finding also implies that models that omit energy efficiency likely overestimate the trade-off between environmental protection and economic performance.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Climate change, Econometric and statistical methods JEL Code(s): E, E3, E32, Q, Q4, Q43, Q5, Q50, Q55
• October 5, 2021

  CORRA Advisory Group Meeting (October 5, 2021)

  Content Type(s): Meetings Source(s): CORRA Advisory Group
• October 4, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (October 11–22)

  As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP).

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
• September 30, 2021

  Research Update - September 2021

  This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.

  Content Type(s): Staff research, Research newsletters

• More Money for Some: The Redistributive Effects of Open Market Operations

  Staff Working Paper 2021-46 Christian Bustamante

  I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Monetary policy, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E2, E21, E3, E32, E5, E52

• Covariates Hiding in the Tails

  Staff Working Paper 2021-45 Milian Bachem, Lerby Ergun, Casper G. de Vries

  We characterize the bias in cross-sectional Hill estimates caused by common underlying factors and propose two simple-to-implement remedies. To test for the presence, direction and size of the bias, we use monthly US stock returns and annual US Census county population data.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods JEL Code(s): C, C0, C01, C1, C14, C5, C58
• September 28, 2021

  Debt Management Strategy Consultations – 2022-23

  The Department of Finance and the Bank of Canada are seeking the views of government securities distributors, institutional investors, and other interested parties on issues related to the design and operation of the Government of Canada’s domestic debt program for 2022-23 and beyond.

  Content Type(s): Press, Market notices