Staff discussion papers

• India and the Global Demand for Commodities: Is There an Elephant in the Room?

  Staff Discussion Paper 2008-18 Michael Francis, Corinne Luu

  After 10 years of impressive growth, India is now the fourth largest economy in the world. Yet, to date, India's impact on global commodity markets has been muted. The authors examine how India's domestic and trade policies have distorted and constrained its demand for commodities.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Development economics, International topics JEL Code(s): F, F1, F14, O, O1, O13, O5, O53

• A Survey and Risk Analysis of Selected Non-Bank Retail Payments Systems

  Staff Discussion Paper 2008-17 Nikil Chande

  Payment services offered by non-banks have flourished in recent years. The author provides an overview of the different kinds of non-bank retail payments schemes currently available in Canada, illustrating each by focusing on a specific example.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial services, Payment clearing and settlement systems JEL Code(s): D, D1, D14, G, G2, G20

• Financial Constraints and the Cash-Holding Behaviour of Canadian Firms

  Staff Discussion Paper 2008-16 Darcey McVanel, Nikita Perevalov

  The proportion of assets held by the average Canadian firm in the form of cash has increased steadily since the early 1990s, and is now roughly twice as large as in 1990. The literature has established that the cash-holding behaviour of firms is highly correlated with financial constraints and firm characteristics.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Sectoral balance sheet JEL Code(s): G, G1, G11, G3, G32

• The Canadian Dollar and Commodity Prices: Has the Relationship Changed over Time?

  Staff Discussion Paper 2008-15 Philipp Maier, Brian DePratto

  The authors examine the impact of the recent run-up in energy and non-energy commodity prices on the Canadian dollar. Using the Bank of Canada's exchange rate equation, they find that the differences between the actual value of the Canadian exchange rate and the simulated values observed in 2007 are not historically large. Still, given that […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rates JEL Code(s): F, F3, F31

• The Impact of Sovereign Wealth Funds on International Financial Stability

  Staff Discussion Paper 2008-14 Tamara Gomes

  Over the recent period, many emerging-market economies and commodity-exporting nations have experienced unprecedented growth and accumulated substantial amounts of foreign exchange reserves. The management of these foreign reserves has led to the emergence of important financial actors: sovereign wealth funds (SWFs).

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, Recent economic and financial developments JEL Code(s): F, F2, F21, F3, F31, F32, G, G1, G15

• What To Do about Bilateral Credit Limits in the LVTS When a Closure Is Anticipated: Risk versus Liquidity Sharing among LVTS Participants

  Staff Discussion Paper 2008-13 Sean O'Connor, Greg Caldwell

  The authors examine the effect of a trade-off between shared credit risk and liquidity efficiency, among participants in Tranche 2 of the Large Value Transfer System (LVTS T2), on their decisions to leave open, or close, their bilateral credit limits (BCLs) to a participant at risk of imminent closure.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial services, Payment clearing and settlement systems JEL Code(s): G, G2, G21, L, L1, L13, L14

• Merchant Acceptance, Costs, and Perceptions of Retail Payments: A Canadian Survey

  Staff Discussion Paper 2008-12 Carlos Arango, Varya Taylor

  Using the results of a survey on accepted means of payment, the authors examine merchant preferences and perceptions of retail payment reliability, risk, and costs; the share of each type of payment method over total sales; and the costs involved in accepting payments.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Bank notes JEL Code(s): E, E4, E41, L, L2

• Liquidity Efficiency and Distribution in the LVTS: Non-Neutrality of System Changes under Network Asymmetry

  Staff Discussion Paper 2008-11 Sean O'Connor, James Chapman, Kirby Millar

  The authors consider the liquidity efficiency of Tranche 2 of the Large Value Transfer System (LVTS T2) by examining, through an empirical analysis, some plausible strategic reactions of individual participants to a systemwide shock to available liquidity in the system.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial services, Payment clearing and settlement systems JEL Code(s): G, G2, G21, L, L1, L13, L14

• A Structural VAR Approach to Core Inflation in Canada

  Staff Discussion Paper 2008-10 Sylvain Martel

  The author constructs a measure of core inflation using a structural vector autoregression containing oil-price growth, output growth, and inflation. This "macro-founded" measure of inflation forecasts total inflation at least as well as other, atheoretical measures.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation and prices JEL Code(s): C, C5, C53, E, E3, E31

• The Implementation of Monetary Policy in Canada

  Staff Discussion Paper 2008-9 Walter Engert, Toni Gravelle, Donna Howard

  The authors present a detailed discussion of the Bank of Canada's framework for the implementation of monetary policy. As background, they provide a brief overview of the financial system in Canada, including a discussion of the financial services industry and the money market.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial markets, Monetary policy implementation, Payment clearing and settlement systems JEL Code(s): E, E5, E52, E58, G, G2, G21