A Uniform Currency in a Cashless Economy
A number of questions can arise when considering the implications of a cashless society. This note considers whether cash is necessary for a uniform currency.
Staff analytical notes are short articles that focus on topical issues relevant to the current economic and financial context.
257
result(s)
Technology Approach for a CBDC
Staff Analytical Note 2020-6
Dinesh Shah,
Rakesh Arora,
Han Du,
Sriram Darbha,
John Miedema,
Cyrus Minwalla
In this note, we highlight a range of technical options and considerations in designing a contingent system for a central bank digital currency (CBDC) in Canada and explore how these options achieve stated public policy goals.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31
CBDC and Monetary Sovereignty
Staff Analytical Note 2020-5
Antonio Diez de los Rios,
Yu Zhu
In an increasingly digitalized world, issuers of private digital currency can weaken central banks’ ability to stabilize the economy. By continuing to make central bank money attractive as a payment instrument in a digital world, a central bank digital currency (CDBC) could help to maintain a country’s monetary sovereignty.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Digital currencies and fintech,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E58,
F,
F5,
F55,
G,
G1,
G15
CBDC and Monetary Policy
Staff Analytical Note 2020-4
Mohammad Davoodalhosseini,
Francisco Rivadeneyra,
Yu Zhu
Improving the conduct of monetary policy is unlikely to be the main motivation for central banks to issue a central bank digital currency (CBDC). While some argue that a CBDC could allow more complex transfer schemes or the ability to break below the zero lower bound, we find these benefits might be small or difficult to realize in practice.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Digital currencies and fintech,
Monetary policy,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E5,
E51,
E52
A Financial Stability Analysis of Zombie Firms in Canada
Staff Analytical Note 2020-3
Timothy Grieder,
Juan Ortega
We measure the prevalence of zombie firms in Canada and assess how they could potentially affect the financial system.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Credit and credit aggregates,
Financial stability,
Sectoral balance sheet
JEL Code(s):
G,
G3,
G32
The Effect of Mortgage Rate Resets on Debt: Evidence from TransUnion (Part I)
Staff Analytical Note 2020-2
Katya Kartashova
This note studies how decreases in mortgage rates affect the behaviour of borrowers in terms of spending on durable goods and repaying debt.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Credit and credit aggregates,
Housing,
Interest rates,
Monetary policy,
Monetary policy transmission
JEL Code(s):
D,
D1,
D12,
D14,
E,
E4,
E43,
E5,
E52,
G,
G2,
G21,
R,
R3,
R31
Characterizing Breadth in Canadian Economic Activity
Staff Analytical Note 2020-1
Taylor Webley,
Carla Valerio,
Maureen MacIsaac
Real growth in gross domestic product tends to be meaningfully higher when a large share of industries and demand components are growing—that is, when growth is broad across many fronts.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Business fluctuations and cycles
JEL Code(s):
E,
E3,
E32
Creations and Redemptions in Fixed-Income Exchange-Traded Funds: A Shift from Bonds to Cash
Staff Analytical Note 2019-34
Rohan Arora,
Sébastien Betermier,
Guillaume Ouellet Leblanc,
Adriano Palumbo,
Ryan Shotlander
The creation and redemption activity of fixed-income exchange-traded funds listed in the United States has shifted. Funds of established issuers have traditionally exchanged their shares for baskets of bonds. In contrast, young funds managed by new issuers tend to create and redeem their shares almost exclusively in cash. Cash transactions imply that new funds are taking on exposure to liquidity risk. This has implications for financial stability.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
Furor over the Fed : Presidential Tweets and Central Bank Independence
Staff Analytical Note 2019-33
Antoine Camous,
Dmitry Matveev
We illustrate how market data can be informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about monetary policy decisions.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Central bank research,
Credibility,
Financial markets,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E5,
E52,
E58
The Cyber Incident Landscape
Staff Analytical Note 2019-32
Nikil Chande,
Dennis Yanchus
The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G2,
G28,
M,
M1,
M15,
O,
O3,
O33,
O38