Fire Sales and Liquidity Requirements Staff working paper 2024-18 Yuteng Cheng, Roberto Robatto We study liquidity requirements in a framework with fire sales. The framework nests three common pricing mechanisms and produces the same observables. Absent risk-sharing considerations, the equilibrium is efficient with cash-in-the-market pricing; a liquidity requirement is optimal with second-best-use pricing; and a liquidity ceiling (i.e., a cap on liquid assets) is optimal with adverse selection. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G1, G12, G2, G23, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Household and business credit
Asset Encumbrance, Bank Funding and Financial Fragility Staff working paper 2016-16 Kartik Anand, Prasanna Gai, James Chapman, Toni Ahnert In this piece we show that a limit on the level of asset encumbrance and minimum capital requirements are effective tools for minimizing the incentive for banks to take excessive risk. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D82, G, G0, G01, G2, G21, G28 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Financial system regulation and oversight
Does Outward Foreign Investment Matter for Canadian Productivity? Evidence from Greenfield Investments Staff working paper 2018-31 Naveen Rai, Lena Suchanek, Maria Bernier This paper seeks to understand how outward foreign direct investment (FDI) affects the productivity of Canadian firms. We estimate the impact of outward greenfield investment on measures of firm-level productivity using FDI data from roughly 2,000 Canadian firms and more than 4,000 outward FDI projects over the 2003–14 period. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D2, D24, F, F2, F21, F23 Research Theme(s): Structural challenges, Digitalization and productivity, International trade, finance and competitiveness
Price Selection Staff working paper 2018-44 Carlos Carvalho, Oleksiy Kryvtsov We propose a simple, model-free way to measure selection in price setting and its contribution to inflation dynamics. The proposed measure of price selection is based on the observed comovement between inflation and the average level from which adjusting prices depart. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E31, E5, E51 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
Measuring the AI Economy Staff working paper 2026-20 Anton Korinek, Patrick McKelvey We construct a macroeconomic estimate of total AI production in the United States, combining inference and R&D/training activities with quality adjustments to account for algorithmic progress. We then develop a nascent framework for "AI GDP" that tracks the AI economy as a coherent whole, complementing traditional national accounts. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C4, C43, E, E0, E01, E2, E22, E3, E31, O, O3, O33, O4, O47 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting, Structural challenges, Digitalization and productivity
June 23, 2003 Financial System Review - June 2003 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. Content Type(s): Publications, Financial Stability Report
Vertical Bargaining and Obfuscation Staff working paper 2022-13 Edona Reshidi Is obscuring prices always bad for consumers? The answer depends on the market structure and on the negotiating power between manufacturers and retailers. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C7, C70, L, L1, L13, L4, L42 Research Theme(s): Financial markets and funds management, Market structure, Models and tools, Economic models
Cashless Bank Branches in Canada Staff analytical note 2019-29 Walter Engert, Ben Fung Cashless or tellerless bank branches have proliferated in several countries in recent years. In a cashless bank branch, teller or counter services such as cash withdrawals, deposits and cheque-cashing are not available. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E41, E42, E5, E51 Research Theme(s): Money and payments, Cash and bank notes, Digital assets and fintech, Retail payments
March 12, 2009 Financial System Policy Responses to the Crisis Remarks David Longworth Financial Markets Association of Canada Toronto, Ontario With your professional interests in foreign exchange, money markets, capital markets, and derivatives, I'm sure the past year and a half has been exciting and interesting – if those are the right words. We've been living through a period of astonishing financial turbulence, historic marketplace losses, and serious threats to financial stability. Content Type(s): Press, Speeches and appearances, Remarks
September 30, 2023 Info Source This document provides information about the functions, programs, activities and related information holdings of government institutions subject to the Access to Information Act and the Privacy Act.