May 24, 2024
Staff research, Publications
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Digital Payments in Firm Networks: Theory of Adoption and Quantum Algorithm
We build a network formation game of firms with trade flows to study the adoption and usage of a new digital currency as an alternative to correspondent banking. -
The Macroeconomic Implications of Coholding
Coholder households simultaneously carry high-cost credit card debt and low-yield cash. We study the implications of this behavior for fiscal and monetary policy, finding that coholder households have smaller consumption responses in the short run but larger responses in the long run. -
Finding a Needle in a Haystack: A Machine Learning Framework for Anomaly Detection in Payment Systems
Our layered machine learning framework can enhance real-time transaction monitoring in high-value payment systems, which are a central piece of a country’s financial infrastructure. When tested on data from Canadian payment systems, it demonstrated potential for accurately identifying anomalous transactions. This framework could help improve cyber and operational resilience of payment systems. -
Endogenous Credibility and Wage-Price Spirals
We quantitively assess the risks of a wage-price spiral occurring in Canada over history. We find the risk of a wage-price spiral increases when the inflation expectations become unanchored and the credibility of central banks declines. -
Parallel Tempering for DSGE Estimation
I develop a population-based Markov chain Monte Carlo algorithm known as parallel tempering to estimate dynamic stochastic general equilibrium models. Parallel tempering approximates the posterior distribution of interest using a family of Markov chains with tempered posteriors. -
May 9, 2024
Financial System Survey highlights—2024
This article presents the key results from the 2024 Bank of Canada Financial System Survey, conducted between February 20 and March 8. The survey included a special section on potential risks arising from different hypothetical interest-rate paths. -
May 9, 2024
Financial Stability Report—2024
Canada’s financial system remains resilient. Over the past year, households, businesses, banks and non-bank financial institutions have continued to proactively adjust to higher interest rates. But this adjustment is not yet over and continues to present risks to financial stability. Key risks include those related to debt serviceability and asset valuations. -
May 2, 2024
Annual Report 2023
The Annual Report outlines the Bank’s activities and achievements in 2023. It includes the financial statements and a message from Governor Tiff Macklem. -
May 2, 2024
Bank of Canada Disclosure of Climate-Related Risks 2023
This report lays out elements of the Bank’s strategy related to climate change and details how the issue will be managed holistically across the organization, following the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.