Estimating Discrete Choice Demand Models with Sparse Market-Product Shocks Staff working paper 2025-10 Zhentong Lu, Kenichi Shimizu We propose a novel approach to estimating consumer demand for differentiated products. We eliminate the need for instrumental variables by assuming demand shocks are sparse. Our empirical applications reveal strong evidence of sparsity in real-world datasets. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C3, D, D1, L, L0, L00 Research Theme(s): Financial markets and funds management, Market structure, Models and tools, Econometric, statistical and computational methods
Risk-Free Uncollateralized Lending in Decentralized Markets: An Introduction to Flash Loans Staff discussion paper 2025-6 Jack Mandin A flash loan is a special type of uncollateralized loan with zero default risk. I document the use for flash loans across major blockchains that are Ethereum-Virtual-Machine-compatible. Flash loans expand access to liquidity, and highly sophisticated actors use them for many practical applications. Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G0, G1, G2 Research Theme(s): Financial markets and funds management, Market functioning, Money and payments, Digital assets and fintech
March 21, 2025 Administrative monetary penalties This supervisory policy provides an overview of the Bank of Canada’s administrative monetary penalties (AMPs) regime and how the Bank determines administrative monetary penalty amounts. Content Type(s): Retail payments supervision materials, Supervisory policies Subject(s): Retail payments supervision, Enforcement, Registration
March 20, 2025 Speech by Tiff Macklem, Governor of the Bank of Canada On Thursday, March 20, 2025, Tiff Macklem, Governor of the Bank of Canada, will speak before Calgary Economic Development. Content Type(s): Press, Media advisories
March 20, 2025 Navigating tariff uncertainty Remarks Tiff Macklem Calgary Economic Development Calgary, Alberta Governor Tiff Macklem discusses how the US trade conflict and uncertainty is hurting business and consumer confidence. He also outlines what the Bank is doing to ensure the trade conflict doesn’t cause widespread or persistent inflation. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
March 20, 2025 Tariffs and trade uncertainty are hurting the Canadian economy Speech summary Tiff Macklem Calgary Economic Development Calgary, Alberta Governor Tiff Macklem discusses how uncertainty about the trade war with the United States has shaken businesses and consumer confidence. He also reiterates that the Bank of Canada must ensure that high prices from tariffs do not lead to ongoing inflation. Content Type(s): Press, Speeches and appearances, Speech summaries Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation
March 19, 2025 The Uses and Limitations of CORRA Transparency Metrics: Beyond Percentiles and Volumes Publishing additional measures of central tendency, such as the mean and mode, alongside CORRA (median) enhances transparency about the shape of the distribution of CORRA-eligible trades.