Contribution of Human Capital Accumulation to Canadian Economic Growth
This paper quantifies the contribution of human capital accumulation to the growth of real gross domestic product (GDP) in Canada.
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297
result(s)
Real Exchange Rate Decompositions
Staff Discussion Paper 2022-6
Bruno Feunou,
Jean-Sébastien Fontaine,
Ingomar Krohn
We break down the exchange rate based on an explicit link between fixed income and currency markets. We isolate a foreign exchange risk premium and show it is the main driver of the exchange rate between the Canadian and US dollars, especially on monetary policy and macroeconomic news announcement days.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Asset pricing,
Exchange rates,
International financial markets,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
F,
F3,
F31,
G,
G1,
G12
COVID-19, Containment and Consumption
Staff Discussion Paper 2022-5
Tatjana Dahlhaus,
Daniel Hyun,
Antoine Poulin-Moore,
Jaime Trujillo,
Saarah Sheikh,
Benjamin Straus
We assess the impact of COVID-19 on consumption indicators by estimating the effects of government-mandated containment measures and of the willingness of individuals to voluntarily physically distance to prevent contagion.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Coronavirus disease (COVID-19),
Domestic demand and components
JEL Code(s):
C,
C2,
C23,
D,
D1,
D12,
E,
E6,
E65,
I,
I1,
I18
A Horse Race of Alternative Monetary Policy Regimes Under Bounded Rationality
Staff Discussion Paper 2022-4
Joel Wagner,
Tudor Schlanger,
Yang Zhang
We introduce bounded rationality in a canonical New Keynesian model calibrated to match Canadian macroeconomic data since Canada’s adoption of inflation targeting. We use the model to quantitatively assess the macroeconomic impact of alternative monetary policy regimes.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Central bank research,
Economic models,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E2,
E27,
E3,
E4,
E5,
E52,
E58
Payment Coordination and Liquidity Efficiency in the New Canadian Wholesale Payments System
Staff Discussion Paper 2022-3
Francisco Rivadeneyra,
Nellie Zhang
We study the impact of the Bank of Canada’s choice of settlement mechanism in Lynx on participant behaviors, liquidity usage, payment delays and the overall operational efficiency of the new system.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Payment clearing and settlement systems
JEL Code(s):
C,
C5,
E,
E4,
E42,
E5,
E58
Heterogeneity and Monetary Policy: A Thematic Review
Staff Discussion Paper 2022-2
Felipe Alves,
Christian Bustamante,
Xing Guo,
Katya Kartashova,
Soyoung Lee,
Thomas Michael Pugh,
Kurt See,
Yaz Terajima,
Alexander Ueberfeldt
The theory that rich economic diversity of businesses and households both affects and is shaped by economy-wide fluctuations has strong implications for monetary policy. This review places these insights in a Canadian context.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Economic models,
Monetary policy and uncertainty,
Monetary policy transmission
JEL Code(s):
D,
D2,
D25,
D3,
D31,
E,
E2,
E22,
E24,
E5,
E50,
E52
Transition Scenarios for Analyzing Climate-Related Financial Risk
Staff Discussion Paper 2022-1
Y.-H. Henry Chen,
Erik Ens,
Olivier Gervais,
Hossein Hosseini Jebeli,
Craig Johnston,
Serdar Kabaca,
Miguel Molico,
Sergey Paltsev,
Alex Proulx,
Argyn Toktamyssov
Climate transition scenarios clarify climate-related risks to our economy and financial system. This paper summarizes key results of Canada-relevant scenarios developed in a pilot project on climate risk by the Bank of Canada and the Office of the Superintendent of Financial Institutions.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Climate change,
Economic models,
Financial stability,
International topics
JEL Code(s):
C,
C6,
C68,
D,
D5,
D58,
E,
E5,
E50,
O,
O4,
O44,
P,
P1,
P18,
Q,
Q5,
Q54
Revisiting the Monetary Sovereignty Rationale for CBDCs
Staff Discussion Paper 2021-17
Skylar Brooks
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Debt management,
Digital currencies and fintech,
Exchange rate regimes,
Financial stability,
Monetary policy
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E52,
E58,
H,
H1,
H12,
H6,
H63
Updated Methodology for Assigning Credit Ratings to Sovereigns
Staff Discussion Paper 2021-16
Karim McDaniels,
Nico Palesch,
Sanjam Suri,
Zacharie Quiviger,
John Walsh
We update the Bank of Canada’s credit rating methodology for sovereigns, including our approach to assessing their fiscal position and monetary policy flexibility. We also explicitly consider climate-related factors.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Credit risk management,
Foreign reserves management
JEL Code(s):
F,
F3,
F31,
G,
G2,
G24,
G28,
G3,
G32
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