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Supervising Financial Regulators
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly. -
November 25, 2016
Bank of Canada announces finalists for the second annual Governor’s Challenge
NOTE TO EDITORS: This press release has been revised to reflect the new date of the final round of The Governor’s Challenge, 4 February 2017.
The Bank of Canada announced the finalists for the 2016–17 edition of The Governor’s Challenge, a student competition in which teams simulate the role of advisor to the Bank’s Governing Council. -
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Central Bank Digital Currencies: A Framework for Assessing Why and How
Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks. -
November 24, 2016
#bankNOTEable Canadian woman will be revealed on 8 December, Bank of Canada publishes short list of five
On Thursday, 8 December 2016, the Minister of Finance and the Governor of the Bank of Canada will reveal which iconic Canadian woman will be featured on the next regularly circulating bank note, expected in 2018. -
The Share of Systematic Variations in the Canadian Dollar—Part I
In this analytical note we show that the share of the systematic variations in the Canadian dollar has risen significantly in the past two decades. Systematic variations in the exchange rate are shared with other currencies. This parallels the equity market, where variations in the price of a given stock are shared with variations in the prices of other stocks. -
Firm-Specific Shocks and Aggregate Fluctuations
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms. -
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Broker Routing Decisions in Limit Order Markets
The primary focus of this paper is to study conflict of interest in the brokerage market. Brokers face a conflict of interest when the commissions they receive from investors differ from the costs imposed by different trading venues.