Financial System Research Centre

On this page we showcase our latest research and analysis, conferences and partnerships with researchers outside the Bank.

About the FSRC

The FSRC will advance high-quality financial system research in Canada to inform policy and improve the economic and financial well-being of Canadians. The Centre showcases the Bank’s latest financial system research and analysis, helping us to build partnerships with researchers outside the Bank. We will also host an annual conference highlighting financial system research from Canada and around the world, including our own research and the results of our joint research ventures.


Research

Our goal is to advance the understanding of the structure, function and evolution of the Canadian financial system. This is essential to the core functions of the Bank. Our in-depth research helps identify risks and shapes policy by addressing issues in financial markets, banking, payments systems and other matters in the financial system.

Stagflation and Topsy-Turvy Capital Flows

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.
Julien Bengui
Julien Bengui
Louphou Coulibaly
Louphou Coulibaly
November 10, 2022

Private Digital Cryptoassets as Investment? Bitcoin Ownership and Use in Canada, 2016-2021

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. 
Daniela Balutel
Daniela Balutel
Walter Engert
Walter Engert
Christopher Henry
Christopher Henry
Kim Huynh
Kim Huynh
Marcel Voia
Marcel Voia
October 12, 2022

Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory

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.
Jonathan Chiu
Jonathan Chiu
Charles M. Kahn
Charles M. Kahn
Thorsten Koeppl
Thorsten Koeppl
October 11, 2022

Windfall Income Shocks with Finite Planning Horizons

How do households respond when they receive unanticipated income, such as an inheritance or government stimulus cheque? This paper studies these windfall income shocks through a model of household behaviour that generates a realistic consumption response for households along the entire distribution of wealth.
Michael Boutros
Michael Boutros
September 20, 2022

House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data

Existing literature documents that house prices respond to monetary policy surprises with a significant delay, taking years to reach their peak response. We present new evidence of a much faster response.
Denis Gorea
Denis Gorea
Oleksiy Kryvtsov
Oleksiy Kryvtsov
Marianna Kudlyak
Marianna Kudlyak
September 20, 2022

Sectoral Uncertainty

We propose a new empirical framework that jointly decomposes the conditional variance of economic time series into a common and a sector-specific uncertainty component. We apply our framework to a disaggregated industrial production series for the US economy. We identify unexpected changes in durable goods uncertainty as drivers of downturns, while unexpected hikes in non-durable goods uncertainty are expansionary.
Efrem Castelnuovo
Efrem Castelnuovo
Kerem Tuzcuoglu
Kerem Tuzcuoglu
Luis Uzeda
Luis Uzeda
September 9, 2022

Conferences

We regularly bring together researchers from academic and policy institutions at conferences that discuss financial system relevant topics such as banking regulation, housing markets, retail payments, and the next generation of central bank models.

4th Bank of Canada FSRC Macro-Finance Conference

Conference held on May 17 and 18, 2021.
May 17, 2021

Financial Markets’ Response to COVID-19 Policy Interventions

Policy-makers reacted to the COVID-19 crisis through a variety of channels. This Systemic Risk Centre conference, co-organized with the Bank of Canada, focused on how financial markets responded to these policy initiatives and asked what we have learned for future interventions.
November 27, 2020

Debt Management Modelling Workshop

The Bank of Canada hosted a one-day workshop focusing on advances in models and frameworks for sovereign debt management.
April 24, 2020

External Partnerships

We value research partnerships and offer opportunities for experienced and promising researchers in a variety of fields.

External Academic Consultants

Academic consultants and researchers working with the Bank have access to some unique data sets and are often granted an individual-level view of household and business choices. Notable experts in the field have started to collaborate with our staff to explore these data sets. Evren Damar and Sebastien Bertermier share their experiences working with us.

PhD Internship Program

As a PhD student, you will spend two to four months pursuing your dissertation as well as presenting and promoting your research. Within this environment, you will find a wealth of opportunities to grow and build your professional expertise and network with fellow Bank researchers as well as external academics who visit regularly.

Visiting Scholar Program

This program provides outstanding scholars with an opportunity to work at the Bank of Canada.