Posts

• Variations in Pass-Through from Global Agricultural Commodity Prices to Domestic Food Inflation

  Staff Discussion Paper 2023-24 Daniel Hyun, Jacky Lee

  This paper examines factors that affect the transmission of fluctuations in global agricultural commodity prices to domestic food inflation.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation and prices, International topics JEL Code(s): E, E3, E31, Q, Q0, Q02, Q1, Q11, Q17, Q18
• October 13, 2023

  Media roundtable with Governor Macklem

  As is customary, Tiff Macklem, Governor of the Bank of Canada, will today hold a virtual roundtable with journalists from the sidelines of the IMF meetings in Marrakech, Morocco.

  Content Type(s): Press, Media advisories

• A Blueprint for the Fourth Generation of Bank of Canada Projection and Policy Analysis Models

  Staff Discussion Paper 2023-23 Donald Coletti

  The fourth generation of Bank of Canada projection and policy analysis models seeks to improve our understanding of inflation dynamics, the supply side of the economy and the underlying risks faced by policy-makers coming from uncertainty about how the economy functions.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Inflation and prices, Labour markets, Monetary policy and uncertainty JEL Code(s): C, C5, C50, C51, C52, C53, C54, C55

• Three things we learned about the Lynx payment system

  Staff Analytical Note 2023-14 Nikil Chande, Zhentong Lu, Hiru Rodrigo, Phoebe Tian

  Canada transitioned to a new wholesale payment system, Lynx, in August 2021. Lynx is based on a real-time settlement model that eliminates credit risk in the system. This model can require more liquidity; however, Lynx’s design allows Canada’s wholesale payments to settle efficiently.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial services, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): C, C1, C10, E, E4, E42, G, G2, G28

• Labor Market Shocks and Monetary Policy

  Staff Working Paper 2023-52 Serdar Birinci, Fatih Karahan, Yusuf Mercan, Kurt See

  We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer transitions for inflation.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Inflation and prices, Labour markets, Monetary policy JEL Code(s): E, E1, E12, E2, E24, E5, E52, J, J3, J31, J6, J62, J64

• Intermediary Market Power and Capital Constraints

  Staff Working Paper 2023-51 Jason Allen, Milena Wittwer

  We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Market structure and pricing JEL Code(s): D, D4, D40, D44, G, G1, G12, G18, G2, G20, L, L1, L10

• Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency

  Staff Discussion Paper 2023-22 Alexandra Sutton-Lalani, Sebastian Hernandez, John Miedema, Jiamin Dai, Badr Omrane

  We explore quantitative and qualitative information about Canadians who face barriers to making digital payments. We also consider the implications of ongoing digitalization for modern financial inclusion and a potential central bank digital currency.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Accessibility, Bank notes, Central bank research, Digital currencies and fintech, Digitalization, Financial services JEL Code(s): A, A1, A14, E, E4, E42, E5, E50, I, I3, I31, O, O3, O33, O5, O51
• October 3, 2023

  Bank of Canada Media Interview – Le Devoir

  Nicolas Vincent, Deputy Governor of the Bank of Canada, gave an interview to Le Devoir.

  Content Type(s): Press, Media advisories
• October 3, 2023

  Bank of Canada Media Interview – Midi info

  Nicolas Vincent, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada’s Alec Castonguay.

  Content Type(s): Press, Media advisories
• October 3, 2023

  How price setting influences inflation

  Speech summary Nicolas Vincent Chamber of Commerce of Metropolitan Montreal Montréal, Quebec

  Deputy Governor Nicolas Vincent talks about how companies set their prices, how those practices changed during the pandemic and why this remains a risk for inflation.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Firm dynamics, Inflation and prices, Price stability