Correcting Selection Bias in a Non-Probability Two-Phase Payment Survey Staff Working Paper 2025-17 Heng Chen, John Tsang We develop statistical inferences for a non-probability two-phase survey sample when relevant auxiliary information is available from a probability survey sample. The proposed method is assessed by simulation studies and used to analyze a non-probability two phase payment survey. Content Type(s): Staff research, Staff working papers Research Topic(s): Bank notes, Econometric and statistical methods JEL Code(s): C, C8, C83
A Foreign Activity Measure for Predicting Canadian Exports Staff Discussion Paper 2012-1 Louis Morel The author constructs a measure of foreign activity that takes into account the composition of foreign demand for Canadian exports. It has a number of interesting features. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Balance of payments and components, Exchange rates, Recent economic and financial developments JEL Code(s): E, E0, E00, F, F1, F17
November 16, 2017 Acceptance and Use of Payments at the Point of Sale in Canada Bank of Canada Review - Autumn 2017 Ben Fung, Kim Huynh, Anneke Kosse Merchants universally accept cash. Consumers widely hold cash but also carry debit and credit cards. The cost of using a method of payment has only a small influence on which method consumers use. Large merchants accept all payments, while only two-thirds of small and medium-sized businesses accept credit cards. Merchants report that credit cards are the costliest payment method compared with cash and debit cards. However, costs are not the only consideration. Merchant acceptance of credit accounts for the many con-sumers that want to use credit cards. This interaction between consumers and merchants is known as network externalities. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Bank notes, Digital currencies and fintech, Financial institutions, Payment clearing and settlement systems JEL Code(s): D, D2, D23, D24, E, E4, E41, E42, G, G2, G21, L, L2
Digital Payments in Firm Networks: Theory of Adoption and Quantum Algorithm Staff Working Paper 2024-17 Sofia Priazhkina, Samuel Palmer, Pablo Martín-Ramiro, Román Orús, Samuel Mugel, Vladimir Skavysh We build a network formation game of firms with trade flows to study the adoption and usage of a new digital currency as an alternative to correspondent banking. Content Type(s): Staff research, Staff working papers Research Topic(s): Central bank research, Digital currencies and fintech, Digitalization, Economic models, Financial institutions, Payment clearing and settlement systems, Sectoral balance sheet JEL Code(s): C, C6, C7, C71, D, D4, D8, D85, G, L, L2, L22
Expectation-Driven Term Structure of Equity and Bond Yields Staff Working Paper 2022-21 Ming Zeng, Guihai Zhao Recent findings on the term structure of equity and bond yields pose serious challenges to existing models of equilibrium asset pricing. This paper presents a new equilibrium model of subjective expectations to explain the joint historical dynamics of equity and bond yields (and their yield spreads). Content Type(s): Staff research, Staff working papers Research Topic(s): Asset pricing, Financial markets, Interest rates JEL Code(s): E, E4, E43, G, G0, G00, G1, G12
The 2021–22 Merchant Acceptance Survey Pilot Study Staff Discussion Paper 2023-1 Angelika Welte, Joy Wu The rise in digital payment innovations has spurred a discussion about the future of cash at the point of sale. The Bank conducted the 2021–22 Merchant Acceptance Survey Pilot Study to study trends in merchant cash acceptance and monitor conditions for the potential issuance of a central bank digital currency. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Bank notes, Digital currencies and fintech, Econometric and statistical methods JEL Code(s): C, C8, D, D2, D22, E, E4, L, L2
February 16, 2000 Monetary Policy Report Update – February 2000 Information received since the last Monetary Policy Report, released on 17 November, points to a stronger pace of economic expansion in the United States and Europe than was expected at that time, and confirms the hesitant nature of the recovery in Japan. Content Type(s): Publications, Monetary Policy Report
An Exploration of First Nations Reserves and Access to Cash Staff Discussion Paper 2021-8 Heng Chen, Walter Engert, Kim Huynh, Daneal O’Habib Adequate cash distribution is one the Bank of Canada’s core interests. Canadians’ ability to access cash influences the Bank’s thinking on issuing a central bank digital currency. We provide a perspective on these issues by exploring access of First Nations reserves to cash. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Bank notes, Digital currencies and fintech, Financial institutions, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42, E5, G, G2, G21
Sluggish Exports in Advanced Economies: How Much Is Due to Demand? Staff Discussion Paper 2015-3 Louis Morel Exports in advanced economies have been relatively sluggish since 2011, growing at a much slower pace than observed before the global financial crisis. Content Type(s): Staff research, Staff discussion papers Research Topic(s): International topics, Recent economic and financial developments JEL Code(s): F, F1, F4
June 19, 2008 China's Integration into the Global Financial System Bank of Canada Review - Summer 2008 Paul Masson, Wendy Dobson, Robert Lafrance Despite having the world's largest GDP when measured in terms of purchasing-power parities, the third-largest share in world exports, and the world's largest foreign exchange reserves, China has only a minor role in the global financial system. Its banks have a modest international presence; China's currency, the renminbi, is virtually not used outside the country; and Chinese capital markets are not a significant source of financing for foreign borrowers. China's modest level of integration into the global financial system is explained by the emphasis given to domestic policy priorities. As the Chinese economy matures, and as reforms strengthen the domestic financial system, China will become more important in global financial markets. Changes are already occurring as China's financial might is being channeled towards overseas investments, and the authorities have committed to greater exchange rate flexibility. These changes will facilitate integration into the global financial system. In this article, the authors describe the current situation and speculate on the future evolution of Chinese financial institutions and markets. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Exchange rate regimes, Financial markets, International topics