FSRC - Financial System Research Center

• Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework

  Staff Working Paper 2021-12 Jiaqi Li

  How do banks adjust their loan rate markup in response to macroeconomic shocks?

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Financial institutions, Interest rates JEL Code(s): E, E3, E32, E4, E44, G, G2, G21, L, L1, L13

• Monetary Policy Pass-Through with Central Bank Digital Currency

  Staff Working Paper 2021-10 Janet Hua Jiang, Yu Zhu

  Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Digital currencies and fintech, Monetary policy transmission JEL Code(s): E, E5, E50, E52

• Eggs in One Basket: Security and Convenience of Digital Currencies

  Staff Working Paper 2021-6 Charles M. Kahn, Francisco Rivadeneyra, Tsz-Nga Wong

  Digital currencies store balances in anonymous electronic addresses. This paper analyzes the trade-offs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Central bank research, Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E51, E58

• Using Payments Data to Nowcast Macroeconomic Variables During the Onset of COVID-19

  Staff Working Paper 2021-2 James Chapman, Ajit Desai

  We use retail payment data in conjunction with machine learning techniques to predict the effects of COVID-19 on the Canadian economy in near-real time. Our model yields a significant increase in macroeconomic prediction accuracy over a linear benchmark model.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Payment clearing and settlement systems JEL Code(s): C, C5, C53, C55, E, E3, E37, E4, E42, E5, E52