Posts
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What Does Structural Analysis of the External Finance Premium Say About Financial Frictions?
I use a structural vector autoregression (SVAR) with sign restrictions to provide conditional evidence on the behavior of the US external finance premium (EFP). The results indicate that the excess bond premium, a proxy for the EFP, reacts countercyclically to supply and monetary policy shocks and procyclically to demand shocks. -
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September 23, 2019
Financial System Research Centre Macrofinance Workshop
The Bank of Canada’s Financial Research Centre hosted its second annual conference on macrofinance this past September. Top Canadian and international researchers discussed issues related to housing markets, pricing of risk, banking policies and regulations, and policy interactions. -
Bank Runs, Portfolio Choice, and Liquidity Provision
After the financial crisis of 2007–09, many jurisdictions introduced new banking regulations to make banks more resilient and less likely to fail. These regulations included tighter limits for the quality and quantity of bank capital and introduced minimum standards for liquidity. But what was the impact of these changes? -
Home Equity Extraction and Household Spending in Canada
We use rich microdata to measure home equity extraction in Canada and track its evolution over time. We find home equity extraction has been rising in recent years and has likely contributed materially to dynamics in household spending. -
September 19, 2019
Bank of Canada announces Deputy Governor and Special Advisor appointments
The Board of Directors of the Bank of Canada today announced the appointment of Toni Gravelle as Deputy Governor, effective October 1, 2019. The Bank also today announced that Mark Hardisty will join the Bank as Special Advisor to the Governor for a two-year term beginning November 6, 2019. -
September 16, 2019
Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in Canada during April 2019
During the month of April, the Bank of Canada and 51 other central banks and monetary authorities conducted the latest survey of turnover activity in the foreign exchange and over-the-counter (OTC) derivatives markets in their respective countries. This worldwide effort was coordinated by the Bank for International Settlements (BIS) and is undertaken every three years. -
September 16, 2019
Bank of Canada announces the launch of the 2020 Fellowship Program awards
The Bank of Canada is inviting Canadian universities to nominate exceptional academics for its 2020 Fellowship and Governor’s awards. -
No Double Standards: Quantifying the Impact of Standard Harmonization on Trade
Product standards are omnipresent in industrialized societies. Though standardization can be beneficial for domestic producers, divergent product standards have been categorized as a major obstacle to international trade. This paper quantifies the effect of standard harmonization on trade flows and characterizes the extent to which it changes the cost and demand structure of exporting.