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2151 Results

More Money for Some: The Redistributive Effects of Open Market Operations

Staff working paper 2021-46 Christian Bustamante
I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations.

Quantum Monte Carlo for Economics: Stress Testing and Macroeconomic Deep Learning

Using the quantum Monte Carlo algorithm, we study whether quantum computing can improve the run time of economic applications and challenges in doing so. We apply the algorithm to two models: a stress testing bank model and a DSGE model solved with deep learning. We also present innovations in the algorithm and benchmark it to classical Monte Carlo.
February 5, 2026

Structural change—Canada at a crossroads

Remarks Tiff Macklem Empire Club of Canada Toronto, Ontario
Governor Tiff Macklem discusses how structural change—driven by U.S. protectionism, AI, and slowing population growth—is reshaping Canada’s economy. He outlines the Bank’s role in maintaining low and stable inflation while helping the economy through the transition.

How changes in the share of constrained households affect the effectiveness of monetary policy

Staff analytical note 2024-3 Felipe Alves, Sushant Acharya
We measure how the change in the share of constrained households in Canada following the COVID-19 recession has impacted the effectiveness of monetary policy.

Borrow Now, Pay Even Later: A Quantitative Analysis of Student Debt Payment Plans

Staff working paper 2023-54 Michael Boutros, Nuno Clara, Francisco Gomes
We investigate alternative student debt contracts that defer payments and ease the burden of student loans on US households by preserving disposable income early in borrowers’ lives. Our model shows substantial welfare gains from these contracts relative to existing plans and gains similar to the Biden administration's proposals but with a significantly lower cost.

The New Benchmark for Forecasts of the Real Price of Crude Oil

How can we assess the quality of a forecast? We propose a new benchmark to evaluate forecasts of temporally aggregated series and show that the real price of oil is more difficult to predict than we thought.

Wage Growth in Canada and the United States: Factors Behind Recent Weakness

This note examines the relatively subdued pace of wage growth in Canada since the commodity price decline in 2014 and assesses whether the weakness is attributable to cyclical (e.g., labour market slack) or structural factors (e.g., resource reallocation and demographic change).

Supply Shocks in the Fog: The Role of Endogenous Uncertainty

Staff working paper 2026-12 Anastasiia Antonova, Mykhailo Matvieiev, Celine Poilly
Recessions feature elevated uncertainty. We develop a nonlinear imperfect-information New Keynesian model where procyclical information quality generates endogenous countercyclical uncertainty and precautionary saving. This demand channel can overturn the inflationary impact of negative supply shocks, making them deflationary, unless monetary policy stabilizes the output gap.
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