Staff analytical notes are short articles that focus on topical issues relevant to the current economic and financial context.
220
result(s)
Digitalization and Inflation: A Review of the Literature
Staff Analytical Note 2017-20
Karyne B. Charbonneau,
Alexa Evans,
Subrata Sarker,
Lena Suchanek
In the past few years, many have postulated that the possible disinflationary effects of digitalization could explain the subdued inflation in advanced economies. In this note, we review the evidence found in the literature. We look at three main channels.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation and prices,
Market structure and pricing,
Productivity
JEL Code(s):
D,
D2,
D22,
E,
E3,
E31,
L,
L8,
L81,
O,
O3,
O33
Digital Transformation in the Service Sector: Insights from Consultations with Firms in Wholesale, Retail and Logistics
Staff Analytical Note 2017-19
Wei Dong,
James Fudurich,
Lena Suchanek
Firms increasingly rely on digital technologies such as e-commerce, cloud computing, big data, digital tracking and digital platforms that are reshaping business operations, business models and market structures. In this context, the Bank of Canada consulted with firms in wholesale, retail and logistics, as well as with related industry associations to yield insights on the adoption of digital technologies.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Firm dynamics,
Inflation and prices,
Service sector
JEL Code(s):
D,
D2,
D22,
E,
E3,
E31,
L,
L8,
L81,
L9,
L92,
O,
O3,
O33
Alternative Scenario to the October 2017 MPR Base-Case Projection: Higher Potential Growth
Staff Analytical Note 2017-18
Jing Yang,
Ben Tomlin,
Olivier Gervais
We construct an alternative scenario in which trend labour input and business investment are stronger than that expected in the Bank of Canada’s base-case projection in the October 2017 Monetary Policy Report.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation and prices,
Monetary policy,
Potential output
JEL Code(s):
E,
E2,
E22,
E24,
E27,
E5
Global Factors and Inflation in Canada
Staff Analytical Note 2017-17
Dany Brouillette,
Laurence Savoie-Chabot
This note investigates whether the recent weakness in inflation in Canada can be related to global factors not included in the current staff analytical framework (domestic slack, movements in commodity prices and in the exchange rate). A global common factor for inflation among selected advanced economies appears to contain marginal information for Canadian inflation beyond what is found in movements in commodity prices and the exchange rate.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation and prices,
Recent economic and financial developments
JEL Code(s):
E,
E3,
E31
Low Inflation in Advanced Economies: Facts and Drivers
Staff Analytical Note 2017-16
Sanjana Bhatnagar,
Anne-Katherine Cormier,
Patrisha de Leon-Manlagnit,
Elise Martin,
Vikram Rai,
Renaud St-Cyr,
Subrata Sarker,
Kristina Hess
Since the global financial crisis, core inflation has been persistently below target in most advanced economies. Recently, it has weakened further in several advanced economies despite gradually diminishing slack. This note reviews recent developments in core inflation across advanced economies and identifies distinctive patterns across regions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation and prices,
International topics
JEL Code(s):
E,
E0,
E3,
E31,
F,
F0
Complementing the Credit Risk Assessment of Financial Counterparties with Market-Based Indicators
Staff Analytical Note 2017-15
Guillaume Ouellet Leblanc,
Maarten van Oordt
The Bank’s internal credit risk assessment abilities are regularly enhanced. In this note, we present a recent innovation that extends the set of market-based indicators used in the credit risk assessment of financial counterparties.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit risk management,
Financial institutions
JEL Code(s):
G,
G1,
G10,
G2,
G24
Can the Canadian International Investment Position Stabilize a Slowing Economy?
Staff Analytical Note 2017-14
Maxime Leboeuf,
Chen Fan
In this note, we find that valuation effects can act as an important stabilizer, strengthening Canada’s net external wealth when its economic outlook worsens relative to that of other countries.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Balance of payments and components,
International financial markets
JEL Code(s):
F,
F2,
F21,
F3,
F32
Redistributive Effects of a Change in the Inflation Target
Staff Analytical Note 2017-13
Robert Amano,
Thomas J. Carter,
Yaz Terajima
In light of the financial crisis and its aftermath, several economists have argued that inflation-targeting central banks should reconsider the level of their inflation targets. While the appropriate level for the inflation target remains an open question, it’s important to note that any transition to a new target would entail certain costs.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58
A Dynamic Factor Model for Commodity Prices
Staff Analytical Note 2017-12
Doga Bilgin,
Reinhard Ellwanger
In this note, we present the Commodities Factor Model (CFM), a dynamic factor model for a large cross-section of energy and non-energy commodity prices. The model decomposes price changes in commodities into a common “global” component, a “block” component confined to subgroups of economically related commodities and an idiosyncratic price shock component.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Econometric and statistical methods,
Recent economic and financial developments
JEL Code(s):
C,
C5,
C51,
Q,
Q0,
Q02