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2333
result(s)
Improving the Efficiency of Payments Systems Using Quantum Computing
Staff Working Paper 2022-53
Christopher McMahon,
Donald McGillivray,
Ajit Desai,
Francisco Rivadeneyra,
Jean-Paul Lam,
Thomas Lo,
Danica Marsden,
Vladimir Skavysh
We develop an algorithm and run it on a hybrid quantum annealing solver to find an ordering of payments that reduces the amount of system liquidity necessary without substantially increasing payment delays.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial services,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C6,
C61,
C63,
D,
D8,
D83,
E,
E4,
E42,
E5,
E58
Are Temporary Oil Supply Shocks Real?
Staff Working Paper 2022-52
Johan Brannlund,
Geoffrey R. Dunbar,
Reinhard Ellwanger
Hurricanes disrupt oil production in the Gulf of Mexico because producers shut in oil platforms to safeguard lives and prevent damage. We examine the effects of these temporary oil supply shocks on real economic activity in the United States.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E32,
Q,
Q3,
Q31,
Q4,
Q41,
Q43
Financial Constraints and Corporate Investment in China
Staff Discussion Paper 2022-22
Kun Mo,
Michel Soudan
Financial constraints deter firms from pursuing optimal investment plans. In China, we find privately owned firms face greater financial constraints than state-owned enterprises (SOEs). This can be explained by our finding that lenders appear less concerned about the credit risk of SOEs, which causes distortions in the allocation of credit.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Firm dynamics
JEL Code(s):
E,
E2,
E22,
G,
G1,
G3
CANVAS: A Canadian Behavioral Agent-Based Model
Staff Working Paper 2022-51
Cars Hommes,
Mario He,
Sebastian Poledna,
Melissa Siqueira,
Yang Zhang
The Bank of Canada’s current suite of models faces challenges in addressing network effects that integrate household and firm-level heterogeneity and their behaviours. We develop CANVAS, a Canadian behavioural agent-based model to contribute to the Bank’s next-generation modelling effort. CANVAS improves forecasting performance and expands capacity for model-based scenario analysis.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Econometric and statistical methods,
Economic models,
Firm dynamics,
Inflation and prices
JEL Code(s):
C,
D,
D2,
D22,
D8,
D83,
E,
E1,
E17
Potential benefits and key risks of fiat-referenced cryptoassets
Staff Analytical Note 2022-20
Hugh Ding,
Natasha Khan,
Bena Lands,
Cameron MacDonald,
Laura Zhao
Cryptoassets that reference a national currency (commonly known as stablecoins) aim to peg their value to the reference currency and typically use a reserve of traditional financial assets to maintain the peg. The market value of these fiat-referenced cryptoassets has grown more than thirtyfold between early 2020 and mid-2022. We explore some of their potential benefits and key risks.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial markets,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
G,
G2,
G28,
L,
O,
O3
The Relative Benefits and Risks of Stablecoins as a Means of Payment: A Case Study Perspective
Staff Discussion Paper 2022-21
Annetta Ho,
Sriram Darbha,
Yuliya Gorelkina,
Alejandro García
Our paper contributes to the discussion about the utility of stablecoins for retail payments through an objective, evidence-based approach that compares stablecoins with traditional retail payment methods. The paper also provides insights that could be useful in the design of central bank digital currencies.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
D,
D7,
D78,
O,
O3,
O38
Understanding Post-COVID Inflation Dynamics
Staff Working Paper 2022-50
Martin Harding,
Jesper Lindé,
Mathias Trabandt
We propose a macroeconomic model with a nonlinear Phillips curve that has a flat slope when inflationary pressures are subdued and steepens when inflationary pressures are elevated. Our model can generate more sizable inflation surges due to cost-push and demand shocks than a standard linearized model when inflation is high.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Coronavirus disease (COVID-19),
Economic models,
Inflation and prices,
Inflation: costs and benefits,
Monetary policy,
Monetary policy implementation
JEL Code(s):
E,
E3,
E30,
E31,
E32,
E37,
E4,
E44,
E5,
E52
Monetary Policy, Credit Constraints and SME Employment
Staff Working Paper 2022-49
Julien Champagne,
Émilien Gouin-Bonenfant
We revisit an old question: how do financial constraints affect the transmission of monetary policy to the real economy? To answer this question, we propose a simple empirical strategy that combines firm-level employment and balance sheet data, identified monetary policy shocks and survey data on financing activities.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Econometric and statistical methods,
Firm dynamics,
Labour markets,
Monetary policy
JEL Code(s):
E,
E2,
E3,
E4,
E43,
E5,
E52,
G,
G3
Regulatory Requirements of Banks and Arbitrage in the Post-Crisis Federal Funds Market
Staff Working Paper 2022-48
Rodney J. Garratt,
Sofia Priazhkina
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks, and arbitrage opportunities created by limited access to the facility granting interest on excess reserves.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Economic models,
Financial institutions,
Financial markets,
Financial stability,
Financial system regulation and policies,
Wholesale funding
JEL Code(s):
E,
E4,
E42,
E5,
E58,
G,
G2,
G28