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2333
result(s)
Decomposing Large Banks’ Systemic Trading Losses
Staff Working Paper 2024-6
Radoslav Raykov
Do banks realize simultaneous trading losses because they invest in the same assets, or because different assets are subject to the same macro shocks? This paper decomposes the comovements of bank trading losses into two orthogonal channels: portfolio overlap and common shocks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
G,
G1,
G10,
G11,
G2,
G20
How changes in the share of constrained households affect the effectiveness of monetary policy
Staff Analytical Note 2024-3
Felipe Alves,
Sushant Acharya
We measure how the change in the share of constrained households in Canada following the COVID-19 recession has impacted the effectiveness of monetary policy.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Monetary policy transmission
JEL Code(s):
E,
E2,
E21,
E4,
E40,
E5,
E50
How Do Agents Form Macroeconomic Expectations? Evidence from Inflation Uncertainty
Staff Working Paper 2024-5
Tao Wang
The uncertainty regarding inflation that is observed in density forecasts of households and professionals helps macroeconomists understand the formation mechanism of inflation expectations. Shocks to inflation take time to be perceived by all agents in the economy, and such rigidity is lower in a high-inflation environment.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices,
Monetary policy and uncertainty
JEL Code(s):
D,
D8,
D84,
E,
E3,
E31,
E7,
E71
Central Bank Digital Currency and Banking Choices
Staff Working Paper 2024-4
Jiaqi Li,
Andrew Usher,
Yu Zhu
To what extent does a central bank digital currency (CBDC) compete with bank deposits? To answer this question, we develop and estimate a structural model where each household chooses which financial institution to deposit their digital money with.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E5,
E50,
E58
The Role of International Financial Integration in Monetary Policy Transmission
Staff Working Paper 2024-3
Jing Cynthia Wu,
Yinxi Xie,
Ji Zhang
We propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We study the implications of financial integration on monetary policy transmission. Among various aspects of financial integration, the bond duration plays a major role. These results hold for conventional and unconventional monetary policies.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
International financial markets,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E52,
F,
F3,
F36,
F4,
F42
The Role of Long-Term Contracting in Business Lending
Staff Working Paper 2024-2
Phoebe Tian
This paper examines inefficiencies arising from a lack of long-term contracting in small business lending in China.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions
JEL Code(s):
D,
D8,
D83,
D86,
G,
G2,
G21,
L,
L1,
L14,
L2,
L26
Market structure of cryptoasset exchanges: Introduction, challenges and emerging trends
Staff Analytical Note 2024-2
Vladimir Skavysh,
Jacob Sharples,
Sofia Priazhkina,
Salman H. Hasham
This paper provides an overview of cryptoasset exchanges. We contrast their design with exchanges in traditional financial markets and discuss emerging regulatory trends and innovations aimed at solving the problems cryptoasset exchanges face.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
G,
G1,
G15,
L,
L1
2022 Methods-of-Payment Survey Report: Cash Use Over 13 Years
Staff Discussion Paper 2024-1
Christopher Henry,
Doina Rusu,
Matthew Shimoda
We present results from the 2022 Methods-of-Payment Survey, including updated payment shares based on a three-day shopping diary. We also assess various factors associated with long-term trends in cash use.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Financial services
JEL Code(s):
D,
D8,
D83,
E,
E4,
E41
Extreme Weather and Low-Income Household Finance: Evidence from Payday Loans
Staff Working Paper 2024-1
Shihan Xie,
Victoria Wenxin Xie,
Xu Zhang
This paper explores the impact of extreme weather exposures on the financial outcomes of low-income households. Our findings highlight the heightened financial vulnerability of low-income households to environmental shocks and underscore the need for targeted policies.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Climate change,
Credit and credit aggregates
JEL Code(s):
G,
G5,
Q,
Q5,
Q54