Staff discussion papers

• 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

• The Global Effects of U.S. Fiscal Policy

  Staff Discussion Paper 2008-8 Kimberly Beaton

  The author examines the global impact of U.S. fiscal policy using the Bank of Canada's Global Economy Model (Lalonde and Muir 2007). In particular, she examines the global macroeconomic implications of the expiration of major tax cuts in the United States and of expected increases in U.S. entitlement program expenditures.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Fiscal policy, International topics, Regional economic developments JEL Code(s): H, H0, H2, H3

• The Effects of a Disruption in CDSX Settlement on Activity in the LVTS: A Simulation Study

  Staff Discussion Paper 2008-7 Lana Embree, Kirby Millar

  The Large Value Transfer System (LVTS) for settling large payments, and CDSX for settling debt and equity trades, are two of the main settlement systems in Canada. They are closely linked; for example, at the end of the day the final CDSX payment obligations must settle on the Bank of Canada's books, with payments made […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, Payment clearing and settlement systems JEL Code(s): E, E5, E58, G, G2, G21

• Reforming the IMF: Lessons from Modern Central Banking

  Staff Discussion Paper 2008-6 Philipp Maier, Eric Santor

  The authors examine the institutional and governance framework of modern central banks to determine whether there are lessons that can be applied to the International Monetary Fund's (IMF's) institutional framework. Such a comparison is appealing for two reasons. First, both central banks and the IMF carry out tasks that can be described as "delegated responsibilities." […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): International topics JEL Code(s): F, F3

• China's Exchange Rate Policy: A Survey of the Literature

  Staff Discussion Paper 2008-5 Robert Lafrance

  China's integration into the world economy has benefited its people by reducing poverty and raising living standards, and it has benefited the industrialized world by producing manufactured goods at lower cost. It has also raised geopolitical concerns as China's power grows, economic concerns as the manufacturing base in many industrialized countries erodes, and polemics as proposals of protectionist measures to counter China's export growth are put forward.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rate regimes JEL Code(s): F, F3, F33, F36

• Sterilized Intervention in Emerging-Market Economies: Trends, Costs, and Risks

  Staff Discussion Paper 2008-4 Robert Lavigne

  The author examines recent trends in sterilized intervention among emerging-market economies, to determine the size and extent of this policy in relation to earlier periods of heavy reserve accumulation. He then analyzes whether the domestic costs and risks of substantial and prolonged sterilization are beginning to manifest themselves.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rate regimes, Financial stability, International topics JEL Code(s): E, E5, E52, F, F3, F31, O, O2, O24

• Understanding Productivity: A Review of Recent Technical Research

  Staff Discussion Paper 2008-3 Richard Dion, Robert Fay

  The authors provide an extensive review of the rapidly expanding research on productivity, both at the macro and micro levels. They focus primarily on papers written about Canada, but also draw on selected studies from other countries, especially the United States, where such work sheds important light on particular aspects of productivity growth. The authors […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Productivity JEL Code(s): D, D2, D24, O, O3, O31, O4, O40, O47