Staff working papers

Counterfeiting is a significant public policy issue, because paper money, despite rumours of its demise, remains an important part of our payments system.

Social learning models of investment provide an interesting explanation for sudden changes in investment behaviour.

Inflation forecasting is fundamental to monetary policy. In practice, however, economists are faced with competing goals: accuracy and theoretical consistency.

The authors conduct a counterfactual simulation of the proposed rules under the new Basel Capital Accord (Basel II), including the revised treatment of expected and unexpected credit losses proposed by the Basel Committee in October 2003.

The authors study a general-equilibrium economy in which agents have the ability to invest in a risky technology.

Choosing a well-designed framework for fiscal and monetary policies is a challenge for economic authorities.

The author uses panel data to assess the sensitivity of investment to cash flow in non-financial firms, taking into account the role their financial health plays in investment decisions.

The author documents some stylized facts about the Canadian financial structure. He explores these empirical facts in the context of Canadian financial legislation and finds that, over the 1990s, Canadian businesses became more heavily dependent on financial markets as their primary source of external funding.

The author examines the impact of economic uncertainty on the demand for money.

The author reviews the theoretical and empirical literature to examine the traditional perception that the following trade-off exists between economic efficiency and stability in the banking system: a competitive banking system is more efficient and therefore important to growth, but market power is necessary for stability in the banking system.