Financial Distress and Hedging: Evidence from Canadian Oil Firms
The paper explores the link between financial distress and the commodity price hedging behaviour of Canadian oil firms.
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1086
result(s)
Disentangling the Factors Driving Housing Resales
Staff analytical note 2019-12
Mikael Khan,
Taylor Webley
We use a recently developed model and loan-level microdata to decompose movements in housing resales since 2015. We find that fundamental factors, namely housing affordability and full-time employment, have had offsetting effects on resales over our study period.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
C,
C2,
C22,
E,
E2,
R,
R2,
R21
Research Theme(s):
Financial system,
Financial stability and systemic risk,
Household and business credit,
Models and tools,
Econometric, statistical and computational methods,
Monetary policy,
Real economy and forecasting
The Neutral Rate in Canada: 2019 Update
Staff analytical note 2019-11
Thomas J. Carter,
Xin Scott Chen,
José Dorich
This note provides an update on Bank of Canada staff’s assessment of the Canadian neutral rate. The neutral rate is the policy rate needed to keep output at its potential level and inflation at target once the effects of any cyclical shocks have dissipated. This medium- to long-run concept serves as a benchmark for gauging the degree of monetary stimulus provided by a given policy setting.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E40,
E43,
E5,
E50,
E52,
E58,
F,
F4,
F41
Research Theme(s):
Models and tools,
Economic models,
Monetary policy,
Monetary policy framework and transmission
Potential Output in Canada: 2019 Reassessment
Staff analytical note 2019-10
Dany Brouillette,
Julien Champagne,
Carol Khoury,
Natalia Kyui,
Jeffrey Mollins,
Youngmin Park
Potential output is expected to grow on average at 1.8 per cent over 2019–21 and at 1.9 per cent in 2022. While the contribution of trend labour input to potential output growth is expected to decrease between 2019 and 2022, the contribution of trend labour productivity is projected to increase.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E0,
E00,
E2,
E22,
E23,
E24,
E3,
E37,
E6
Research Theme(s):
Monetary policy,
Real economy and forecasting,
Structural challenges,
Demographics and labour supply,
Digitalization and productivity
Could Canadian Bond Funds Add Stress to the Financial System?
Staff analytical note 2019-9
Rohan Arora,
Guillaume Bédard-Pagé,
Guillaume Ouellet Leblanc,
Ryan Shotlander
We create a hypothetical scenario to study the role bond funds play in intensifying shocks to the financial system. Using data from 2018 and 2007, we find that bond funds play a larger role now than they did in the past.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
G,
G1,
G2,
G20,
G23
Research Theme(s):
Financial markets and funds management,
Market functioning,
Financial system,
Financial institutions and intermediation,
Financial stability and systemic risk
Labor Mobility in a Monetary Union
Staff working paper 2019-15
Daniela Hauser,
Martin Seneca
The optimal currency literature has stressed the importance of labor mobility as a precondition for the success of monetary unions. But only a few studies formally link labor mobility to macroeconomic adjustment and policy. In this paper, we study macroeconomic dynamics and optimal monetary policy in an economy with cyclical labor flows across two distinct regions that share trade links and a common monetary framework.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4
Research Theme(s):
Models and tools,
Economic models,
Monetary policy,
Monetary policy framework and transmission,
Structural challenges,
Demographics and labour supply
Bond Funds and Fixed-Income Market Liquidity: A Stress-Testing Approach
Technical report No. 115
Rohan Arora,
Guillaume Bédard-Pagé,
Guillaume Ouellet Leblanc,
Ryan Shotlander
This report provides a detailed technical description of a stress test model for investment funds called Ceto.
Content Type(s):
Staff research,
Technical reports
JEL Code(s):
G,
G1,
G12,
G14,
G2,
G20,
G23
Research Theme(s):
Financial markets and funds management,
Market functioning,
Financial system,
Financial institutions and intermediation,
Financial stability and systemic risk
Firm-level Investment Under Imperfect Capital Markets in Ukraine
Staff working paper 2019-14
Oleksandr Shcherbakov
This paper develops and estimates a model of firm-level fixed capital investment when
firms face borrowing constraints.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
C,
C6,
C61,
C63,
D,
D2,
D24,
G,
G3,
G31
Research Theme(s):
Financial system,
Household and business credit,
Models and tools,
Econometric, statistical and computational methods,
Economic models
Global Commodity Markets and Rebalancing in China: The Case of Copper
Staff discussion paper 2019-3
Jeannine Bailliu,
Doga Bilgin,
Kun Mo,
Kurt Niquidet,
Benjamin Sawatzky
Given that China accounts for about half of global copper consumption, it is reasonable to expect that any significant change in Chinese copper consumption will have an impact on the global market.
Content Type(s):
Staff research,
Staff discussion papers
JEL Code(s):
O,
O1,
O13,
O14,
Q,
Q0,
Q02
Research Theme(s):
Models and tools,
Econometric, statistical and computational methods,
Monetary policy,
Inflation dynamics and pressures,
Real economy and forecasting,
Structural challenges,
International trade, finance and competitiveness
The Trend Unemployment Rate in Canada: Searching for the Unobservable
Staff working paper 2019-13
Dany Brouillette,
Marie-Noëlle Robitaille,
Laurence Savoie-Chabot,
Pierre St-Amant,
Bassirou Gueye,
Elise Nelson
In this paper, we assess several methods that have been used to measure the Canadian trend unemployment rate (TUR). We also consider improvements and extensions to some existing methods.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
C,
C5,
C52,
C53,
E,
E2,
E24,
E27
Research Theme(s):
Models and tools,
Econometric, statistical and computational methods,
Economic models,
Monetary policy,
Inflation dynamics and pressures,
Real economy and forecasting