May 16, 2019 Financial System Review—2019 In our Financial System Review, we identify the main vulnerabilities and risks to financial stability in Canada and explain how they have evolved over the past year. This issue reflects the Bank’s judgment that the vulnerabilities associated with high household debt and imbalances in the housing market have declined modestly but remain significant. The Financial System Review is a product of the Governing Council of the Bank of Canada: Stephen S. Poloz, Carolyn A. Wilkins, Timothy Lane, Lawrence Schembri, Lynn Patterson and Paul Beaudry. Content Type(s): Publications, Financial Stability Report
Price-Level Dispersion versus Inflation-Rate Dispersion: Evidence from Three Countries Staff working paper 2017-3 David Fielding, Christopher Hajzler, James (Jim) C. MacGee Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E31, E5, E50 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
June 23, 2004 Financial System Review - June 2004 This section of the Financial System Review examines the recent performance of the Canadian financial system and the factors, both domestic and international, that are influencing it. In each issue, one or more subjects of particular interest are discussed as highlighted topics. Content Type(s): Publications, Financial Stability Report
Nowcasting Canadian Economic Activity in an Uncertain Environment Staff discussion paper 2018-9 Tony Chernis, Rodrigo Sekkel This paper studies short-term forecasting of Canadian real GDP and its expenditure components using combinations of nowcasts from different models. Starting with a medium-sized data set, we use a suite of common nowcasting tools for quarterly real GDP and its expenditure components. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, C53, E, E3, E37, E5, E52 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting
The Economics of Cryptocurrencies—Bitcoin and Beyond Staff working paper 2019-40 Jonathan Chiu, Thorsten Koeppl Since the creation of Bitcoin in 2009, over 2,000 cryptocurrencies have been issued. We evaluate how well a cryptocurrency functions as a payment system. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E5, L, L5 Research Theme(s): Monetary policy, Monetary policy tools and implementation, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Assessing Vulnerabilities in Emerging-Market Economies Staff discussion paper 2018-13 Tatjana Dahlhaus, Alexander Lam This paper introduces a new tool to monitor economic and financial vulnerabilities in emerging-market economies. We obtain vulnerability indexes for several early warning indicators covering 26 emerging markets from 1990 to 2017 and use them to monitor the evolution of vulnerabilities before, during and after an economic or financial crisis. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C8, C82, F, F3, F34, G, G0, G01, G1, G15 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Structural challenges, International trade, finance and competitiveness
December 23, 2004 Bank of Canada Lender-of-Last-Resort Policies Financial System Review - December 2004 The Bank of Canada has distinct roles as a lender of last resort. This article outlines how and under what circumstances the Bank can routinely provide liquidity to facilitate payment settlement, as well as the various ways it can respond in more exceptional situations. Content Type(s): Publications, Financial System Review articles
April 26, 2000 The Canadian Economy: Charting a Course for the Future Remarks Gordon Thiessen Chambre de commerce régionale de Sainte-Foy Sainte-Foy, Quebec The 1990s was a difficult period for Canada and the Canadian economy. From the beginning of the decade, it was clear that we had to grapple with the problems that had been hampering our economic performance through most of the 1970s and 1980s. Content Type(s): Press, Speeches and appearances, Remarks
December 14, 2009 Financial System Review - December 2009 Conditions in the international financial system have improved considerably since June in response to the forceful actions taken by policy-makers around the world.FSR Highlights - December 2009 Content Type(s): Publications, Financial Stability Report
Balancing the Canadian Repo Market through QT: The Diminishing Role of Settlement Balances Staff analytical paper 2026-40 Evan Dudley, Jean-Sébastien Fontaine, Dimitri Hadjistavropoulos, Neil Maru, Sofia Tchamova, Andreas Uthemann, Jun Yang Repo market imbalances can be large and persistent, and can lift the cost of short-term funding in Canada, including the CORRA benchmark. Banks’ holdings of settlement balances absorbed most of the repo imbalances during QE, but have become far less central by the end of QT. Content Type(s): Staff research, Staff analytical paper JEL Code(s): E, E5, E52, E58 Research Theme(s): Financial system, Financial institutions and intermediation, Monetary policy, Monetary policy tools and implementation