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2333
result(s)
Variable-rate mortgages with fixed payments: Examining trigger rates
Staff Analytical Note 2022-19
Stephen Murchison,
Maria teNyenhuis
We estimate the share of variable-rate mortgages with fixed payments that reached the so-called trigger rate—the interest rate at which mortgage payments no longer cover the principal. Amid rising interest rates, this share was close to 50% at the end of October 2022 and could potentially reach 65% in 2023.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Financial institutions,
Interest rates,
Recent economic and financial developments
JEL Code(s):
D,
D1,
E,
E4,
E5,
G,
G2,
G21
Are Working Hours Complements in Production?
Staff Working Paper 2022-47
Lin Shao,
Faisal Sohail,
Emircan Yurdagul
Using Canadian matched employer-employee data, we show that working hours of different workers are gross complements in production rather than perfect substitutes, as is typically assumed by macroeconomic models of production.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Labour markets
JEL Code(s):
E,
E2,
E23,
J,
J2,
J22,
J23,
J3,
J31
Canada’s Beveridge curve and the outlook for the labour market
Staff Analytical Note 2022-18
Alexander Lam
Canada’s labour market is tight but beginning to ease. Unemployment will likely rise in turn, but the economy can avoid a recessionary surge given current conditions. Higher unemployment would nonetheless be material, especially for those directly impacted.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Business fluctuations and cycles,
Central bank research,
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E3,
E32,
J,
J2,
J20,
J6,
J63,
J64
Stagflation and Topsy-Turvy Capital Flows
Staff Working Paper 2022-46
Julien Bengui,
Louphou Coulibaly
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.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
International financial markets,
International topics,
Monetary policy
JEL Code(s):
D,
D6,
D62,
E,
E5,
E52,
F,
F3,
F32,
F38,
F4,
F41
Core inflation over the COVID-19 pandemic
Staff Analytical Note 2022-17
Mikael Khan,
Elyse Sullivan
We assess the usefulness of various measures of core inflation over the COVID-19 pandemic. We find that Cpi-trim and CPI-median provided the best signal of underlying inflation. The favourable performance of these measures stems from their lack of reliance on historical experience, an especially valuable feature in unprecedented times.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Econometric and statistical methods,
Inflation and prices,
Monetary policy
JEL Code(s):
C,
C1,
C18,
E,
E3,
E31
Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?
Staff Working Paper 2022-45
Pierre-Olivier Gourinchas,
Şebnem Kalemli-Özcan,
Veronika Penciakova,
Nicholas Sander
The COVID-19 pandemic has caused an atypical recession in which some sectors of the economy boomed and others collapsed. This required a unique fiscal policy reaction to both support firms and stimulate activity in sectors with slack. Was fiscal policy able to get where it was needed? Mostly, yes.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Firm dynamics,
Fiscal policy,
International topics
JEL Code(s):
D,
D5,
D57,
E,
E6,
E62,
F,
F4,
F41
Considerations for the allocation of non-default losses by financial market infrastructures
Staff Analytical Note 2022-16
Daniele Costanzo,
Radoslav Raykov
Non-default losses of financial market infrastructures (FMIs) have gained attention due to their potential impacts on FMIs and FMI participants, and the lack of a common approach to address them. A key question is, who should absorb these losses?
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Financial system regulation and policies
JEL Code(s):
G,
G2,
G23,
G28,
G3,
G32,
G33
Private Digital Cryptoassets as Investment? Bitcoin Ownership and Use in Canada, 2016-2021
Staff Working Paper 2022-44
Daniela Balutel,
Walter Engert,
Christopher Henry,
Kim Huynh,
Marcel Voia
We report on the dynamics of Bitcoin awareness and ownership from 2016 to 2021, using the Bank of Canada's Bitcoin Omnibus Surveys (BTCOS). Our analysis also helps understand Bitcoin owners who adopted during the COVID-19 and how they differ from long-term owners.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
E,
E4,
O,
O5,
O51
Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory
Staff Working Paper 2022-43
Jonathan Chiu,
Charles M. Kahn,
Thorsten Koeppl
We analyze the value proposition and limitations of decentralized finance (DeFi). Based on a distributed ledger and smart contracts, DeFi can guarantee the execution of financial contracts, potentially lowering the costs of intermediation and improving financial inclusion.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
G,
G2