Uncategorized

• Changing Fortunes: Long-Termism—G-Zero, Artificial Intelligence and Debt

  Staff Discussion Paper 2019-12 Stephen S. Poloz

  This paper discusses three long-term forces that are acting on the global economy and their implications for companies and policy-makers.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, International topics, Monetary policy, Monetary policy and uncertainty, Trade integration JEL Code(s): E, E6, E63, F, F0, F02, F1, F15, F5, F53, F6, H, O, O1, O11, O3, O33

• 2018 Merchant Acceptance Survey

  Staff Analytical Note 2019-31 Kim Huynh, Gradon Nicholls, Mitchell Nicholson

  In 2015, the Bank of Canada surveyed merchants and found that cash was nearly universally accepted (Fung, Huynh and Kosse 2017). Since 2015, retail payments in Canada have become increasingly digitalized, as many Canadians have adopted digital payment innovations like contactless cards and Interac e-Transfer.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Bank notes, Digital currencies and fintech, Econometric and statistical methods JEL Code(s): C, C8, D, D2, D22, E, E4, L, L2

• Loan Insurance, Market Liquidity, and Lending Standards

  Staff Working Paper 2019-47 Toni Ahnert, Martin Kuncl

  We examine loan insurance—credit risk transfer upon origination—in a model in which lenders can screen, learn loan quality over time, and can sell loans. Some lenders with low screening ability insure, benefiting from higher market liquidity of insured loans while forgoing the option to exploit future information about loan quality.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial markets, Financial system regulation and policies JEL Code(s): G, G0, G01, G2, G21, G28

• Assessment of Liquidity Creation in the Canadian Banking System

  Staff Analytical Note 2019-30 Annika Gnann, Sahika Kaya

  Liquidity creation is a fundamental function of banks. It provides the public with easy access to funds. These funds are important because they allow households and businesses to consume and invest. In this note, we measure liquidity creation by Canadian financial institutions from the first quarter of 2012 to the second quarter of 2019, using a methodology suggested by Berger and Bouwman (2009) and known as the BB measure.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial stability, Monetary and financial indicators JEL Code(s): G, G2, G21, G28, G3, G32

• Extreme Downside Risk in Asset Returns

  Staff Working Paper 2019-46 Lerby Ergun

  Financial markets can experience sudden and extreme downward movements. Investors are highly concerned about the performance of their assets in such scenarios. Some assets perform badly in a downturn in the market; others have milder reactions.

  Content Type(s): Staff research, Staff working papers Topic(s): Asset pricing, Econometric and statistical methods JEL Code(s): C, C1, C14, G, G1, G11, G12
• December 6, 2019

  Bank of Canada Governor Stephen S. Poloz to step down in June 2020

  Media Relations Ottawa, Ontario

  The Board of Directors of the Bank of Canada announced today that Governor Stephen S. Poloz has informed them that he will not seek a second term as Governor when his seven-year term expires on June 2, 2020.

  Content Type(s): Press, Press releases

• What Do Survey Data Tell Us About US Businesses?

  Staff Working Paper 2019-45 Anmol Bhandari, Serdar Birinci, Ellen McGrattan, Kurt See

  This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Firm dynamics JEL Code(s): C, C8, C83, E, E2, E22, H, H2, H25
• December 5, 2019

  Economic Progress Report: Charting Our Own Course

  Remarks Timothy Lane Ottawa Board of Trade Ottawa, Ontario

  Deputy Governor Timothy Lane talks about the different monetary policy paths taken by Canada and the United States over the last decade and reviews the Bank of Canada’s latest interest rate decision.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Monetary policy, Monetary policy framework, Recent economic and financial developments
• December 5, 2019

  Canadian economy resilient despite global uncertainty

  Speech summary Timothy Lane Ottawa Board of Trade and Ottawa Business Journal Ottawa, Ontario

  Speaking a day after we decided to hold interest rates steady, Deputy Governor Timothy Lane explained that Canada’s economy remains resilient.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Monetary policy, Monetary policy framework, Recent economic and financial developments
• December 4, 2019

  Bank of Canada maintains overnight rate target at 1 ¾ percent

  Media Relations Ottawa, Ontario

  The Bank of Canada today maintained its target for the overnight rate at 1 ¾ percent. The Bank Rate is correspondingly 2 percent and the deposit rate is 1 ½ percent.

  Content Type(s): Press, Press releases