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296
result(s)
On the Nexus of Monetary Policy and Financial Stability: Recent Developments and Research
Staff Discussion Paper 2015-7
Oleksiy Kryvtsov,
Miguel Molico,
Ben Tomlin
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks need to be more fully specified (Côté 2014).
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial stability,
Monetary policy framework
JEL Code(s):
E,
E0,
E4,
E44,
E5,
E52,
E58,
G,
G1,
G18
Public Policy Objectives and the Next Generation of CPA Systems: An Analytical Framework
Staff Discussion Paper 2015-6
James Chapman,
Jonathan Chiu,
Sajjad Jafri,
Héctor Pérez Saiz
The payments landscape in Canada is rapidly changing and will continue to evolve, fuelled by strong and persistent drivers. In Canada, the Canadian Payments Association (CPA) is on a path to modernize Canada’s core payment systems.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Financial services,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
L,
L1,
L14,
L15,
L5,
L52
Cheap But Flighty: How Global Imbalances Create Financial Fragility
Staff Working Paper 2015-33
Enrico Perotti,
Toni Ahnert
We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
F,
F3,
G,
G2
Quantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing Approach
Staff Working Paper 2015-32
Kartik Anand,
Céline Gauthier,
Moez Souissi
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies
JEL Code(s):
C,
C7,
C72,
E,
E5,
E58,
G,
G0,
G01,
G2,
G21,
G28
Risk Sharing in the Presence of a Public Good
Staff Working Paper 2015-27
Josef Schroth
This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents’ relative preference for private versus public good consumption.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies,
Fiscal policy
JEL Code(s):
D,
D8,
D82,
D86,
E,
E6,
E62,
H,
H2,
H21,
H23,
H7,
H77
Productive Misallocation and International Transmission of Credit Shocks
Staff Working Paper 2015-19
Yuko Imura,
Julia Thomas
We develop an asymmetric, two-country equilibrium business cycle model to study the role of international trade in transmitting and propagating the real effects of global financial shocks. Our model predicts that a recession in a large economy considerably alters a recession in its smaller trade partner, with distinct investment dynamics driving the transmission.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Financial markets,
Financial stability,
International topics
JEL Code(s):
E,
E2,
E22,
E3,
E32,
E4,
E44,
F,
F4,
F41,
F44
A Wake-Up-Call Theory of Contagion
Staff Working Paper 2015-14
Christoph Bertsch,
Toni Ahnert
We propose a novel theory of financial contagion. We study global coordination games of regime change in two regions with an initially uncertain correlation of regional fundamentals.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Financial stability,
International financial markets
JEL Code(s):
D,
D8,
D82,
F,
F3,
G,
G0,
G01
Effects of Funding Portfolios on the Credit Supply of Canadian Banks
Staff Working Paper 2015-10
H. Evren Damar,
Césaire Meh,
Yaz Terajima
This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies,
Monetary policy implementation
JEL Code(s):
E,
E5,
E52,
G,
G2,
G21
Securitization under Asymmetric Information over the Business Cycle
Staff Working Paper 2015-9
Martin Kuncl
This paper studies the efficiency of financial intermediation through securitization in a model with heterogeneous investment projects and asymmetric information about the quality of securitized assets. I show that when retaining part of the risk, the issuer of securitized assets may credibly signal its quality.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Economic models,
Financial markets,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E3,
E32,
E4,
E44,
G,
G0,
G01,
G2,
G20