Fiscal policy - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T13:03:32+00:00Immigration and Provision of Public Goods: Evidence at the Local Level in the U.S.
https://www.bankofcanada.ca/2023/11/staff-working-paper-2023-57/
Using U.S. county-level data from 1990 to 2010, we study the causal impact of immigration on the provision of local public goods. We uncover substantial heterogeneity across immigrants with different skills and immigrants of different generations, which leads to unequal fiscal effects across U.S. counties.2023-11-24T14:53:52+00:00enImmigration and Provision of Public Goods: Evidence at the Local Level in the U.S.2023-11-24Fiscal policyInternational topicsRegional economic developmentsStaff Working Paper 2023-57https://www.bankofcanada.ca/wp-content/uploads/2023/11/swp2023-57.pdfImmigration and Provision of Public Goods: Evidence at the Local Level in the U.S.Anna Maria MaydaMine Z. SensesWalter SteingressNovember 2023FF2F22HH4H41H7JJ6J61J68RR5International Portfolio Rebalancing and Fiscal Policy Spillovers
https://www.bankofcanada.ca/2023/11/staff-working-paper-2023-56/
We evaluate, both empirically and theoretically, the spillover effects that debt-financed fiscal policy interventions of the United States have on other economies. We consider a two-country model with international portfolio rebalancing effects. We show that US fiscal expansions would increase global long-term rates and hinder economic activity in the rest of the world.2023-11-01T15:05:01+00:00enInternational Portfolio Rebalancing and Fiscal Policy Spillovers2023-11-01Economic modelsFiscal policyInternational topicsStaff Working Paper 2023-56https://www.bankofcanada.ca/wp-content/uploads/2023/11/swp2023-56.pdfInternational Portfolio Rebalancing and Fiscal Policy SpilloversSami AlpandaUluc AysunSerdar KabacaNovember 2023EE3E32E6E62FF4F41F44What People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey Experiment
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-36/
We conduct a large-scale survey to shed light on what people believe about public finance. An experiment demonstrates that central bank communication can persistently shift views on monetary financing. It further suggests that views on monetary financing impact support for fiscal discipline.2023-06-14T09:52:58+00:00enWhat People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey Experiment2023-06-14Central bank researchFiscal policyMonetary policyStaff Working Paper 2023-36https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-36.pdfWhat People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey ExperimentCars HommesJulien PinterIsabelle SalleJune 2023CC8C83EE5E58E6E60E62E7E70GG5G53HH3H31Understanding Inflation Dynamics: The Role of Government Expenditures
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-30/
We study the impact government expenditure has on inflation. We find that changes in government expenditure account for a substantial portion of inflation variations. We also find that inflation and inflation expectations respond negatively to fiscal spending shocks, reaffirming the supply-side channel through which inflation responds to fiscal expansions.2023-06-09T08:36:36+00:00enUnderstanding Inflation Dynamics: The Role of Government Expenditures2023-06-09Central bank researchFiscal policyInflation and pricesStaff Working Paper 2023-30https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-30.pdfStaff Working Paper 2023-30Chang LiuYinxi XieJune 2023EE3E6E62E63The Impact of Unemployment Insurance and Unsecured Credit on Business Cycles
https://www.bankofcanada.ca/2023/04/staff-working-paper-2023-22/
This paper studies how unsecured consumer credit impacts the extent to which unemployment insurance (UI) policies smooth aggregate consumption fluctuations over the business cycle. Using a general equilibrium real business cycle model, I find that unsecured credit amplifies the extent to which UI smooths cyclical consumption fluctuations.2023-04-13T11:15:08+00:00enThe Impact of Unemployment Insurance and Unsecured Credit on Business Cycles2023-04-13Business fluctuations and cyclesCredit and credit aggregatesEconomic modelsFiscal policyLabour marketsStaff Working Paper 2023-22https://www.bankofcanada.ca/wp-content/uploads/2023/04/swp2023-22.pdfStaff Working Paper 2023-22Michael IrwinApril 2023EE2E21E24E3E32E4E44E6E62Fiscal Stimulus and Skill Accumulation over the Life Cycle
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-9/
Using micro data from the U.S. Consumer Expenditure Survey and Current Population Survey, I document that government spending shocks affect individuals differently over the life cycle.2023-01-30T10:26:17+00:00enFiscal Stimulus and Skill Accumulation over the Life Cycle2023-01-30Business fluctuations and cyclesFiscal policyProductivityStaff Working Paper 2023-9https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-9.pdfFiscal Stimulus and Skill Accumulation over the Life CycleLaure SimonJanuary 2023DD1D12D15EE2E21E6E62JJ1J11J2J24(Un)Conventional Monetary and Fiscal Policy
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-6/
We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments.2023-01-26T09:35:25+00:00en(Un)Conventional Monetary and Fiscal Policy2023-01-26Fiscal policyMonetary policyStaff Working Paper 2023-6https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-6.pdfStaff Working Paper 2023-6Jing Cynthia WuYinxi XieJanuary 2023EE4E6E61E62E63Gazing at r-star: A Hysteresis Perspective
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-5/
Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to show that the major change driving household asset demand over this period is instead an increased desire—for a given age and income level—to hold assets.2023-01-12T09:46:25+00:00enGazing at r-star: A Hysteresis Perspective2023-01-12Economic modelsFiscal policyInflation and pricesInflation targetsInterest ratesMonetary policyMonetary policy frameworkStaff Working Paper 2023-5https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-5.pdfGazing at r-star: A Hysteresis PerspectivePaul BeaudryKatya KartashovaCésaire MehJanuary 2023EE2E21E3E31E4E43E5E52E58E6E62GG5G51HH6Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?
https://www.bankofcanada.ca/2022/11/staff-working-paper-2022-45/
The COVID-19 pandemic has caused an atypical recession in which some sectors of the economy boomed and others collapsed. This required a unique fiscal policy reaction to both support firms and stimulate activity in sectors with slack. Was fiscal policy able to get where it was needed? Mostly, yes.2022-11-07T12:55:12+00:00enFiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?2022-11-07Coronavirus disease (COVID-19)Firm dynamicsFiscal policyInternational topicsStaff Working Paper 2022-45https://www.bankofcanada.ca/wp-content/uploads/2022/11/swp2022-45.pdfStaff Working Paper 2022-45Pierre-Olivier GourinchasŞebnem Kalemli-ÖzcanVeronika PenciakovaNicholas SanderNovember 2022DD5D57EE6E62FF4F41Windfall Income Shocks with Finite Planning Horizons
https://www.bankofcanada.ca/2022/09/staff-working-paper-2022-40/
How do households respond when they receive unanticipated income, such as an inheritance or government stimulus cheque? This paper studies these windfall income shocks through a model of household behaviour that generates a realistic consumption response for households along the entire distribution of wealth.2022-09-20T08:47:42+00:00enWindfall Income Shocks with Finite Planning Horizons2022-09-20Domestic demand and componentsEconomic modelsFiscal policyStaff Working Paper 2022-40https://www.bankofcanada.ca/wp-content/uploads/2022/09/swp2022-40.pdfWindfall Income Shocks with Finite Planning HorizonsMichael BoutrosSeptember 2022DD9D91EE2E21GG5G51