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2340
result(s)
Central Bank Liquidity Facilities and Market Making
Staff Working Paper 2022-9
David Cimon,
Adrian Walton
We create a theoretical model of central bank asset purchases. The model helps explain how, in a crisis, these purchases ease pressures on investment dealers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Economic models,
Financial institutions,
Financial markets,
Market structure and pricing
JEL Code(s):
G,
G1,
G10,
G2,
G20,
L,
L1,
L10
Dynamic Privacy Choices
Staff Working Paper 2022-8
Shota Ichihashi
Consumers often express concerns about lack of privacy, but they still give up a lot of data to digital platforms. This paper builds a dynamic game-theoretic model of data collection and privacy protection, which potentially explains consumers’ behaviour.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models
JEL Code(s):
D,
D8,
D82,
D83
The Impact of Globalization and Digitalization on the Phillips Curve
Staff Working Paper 2022-7
Christian Friedrich,
Peter Selcuk
Globalization is in retreat, yet digitalization is on the rise. How will these trends impact inflation?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices,
International topics,
Labour markets,
Recent economic and financial developments,
Trade integration
JEL Code(s):
E,
E3,
E31,
E32,
F,
F6
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
Topic(s):
Central bank research,
Economic models,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E2,
E27,
E3,
E4,
E5,
E52,
E58
Monetary Policy and Redistribution in Open Economies
Staff Working Paper 2022-6
Xing Guo,
Pablo Ottonello,
Diego Perez
We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rate regimes,
Monetary policy
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4,
F41,
F44
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
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
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
On the Wedge Between the PPI and CPI Inflation Indicators
Staff Working Paper 2022-5
Shang-Jin Wei,
Yinxi Xie
We find that the CPI and PPI inflation indexes co-moved strongly throughout the late 20th century, but their correlation has fallen substantially since the early 2000s. We offer a structural explanation for this divergence based on the growth of global supply chains since 2000. This finding offers a unique perspective for the future design of optimal monetary policy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation targets,
International topics,
Monetary policy
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58,
F,
F1,
F11,
F12,
F4,
F41,
F6,
F62
The Financial Origins of Non-fundamental Risk
Staff Working Paper 2022-4
Sushant Acharya,
Keshav Dogra,
Sanjay Singh
We explore the idea that the financial sector can be a source of non-fundamental risk to the rest of the economy. We also consider whether policy can be used to reduce this risk—either by increasing the supply of publicly backed safe assets or by reducing the demand for safe assets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Financial markets,
Financial stability
JEL Code(s):
D,
D5,
D52,
D8,
D84,
E,
E6,
E62,
G,
G1,
G10,
G12