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2378
result(s)
The Impact of Globalization and Digitalization on the Phillips Curve
Staff Working Paper 2022-7
Christian Friedrich,
Peter Selcuk
Globalization is in retreat, yet digitalization is on the rise. How will these trends impact inflation?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices,
International topics,
Labour markets,
Recent economic and financial developments,
Trade integration
JEL Code(s):
E,
E3,
E31,
E32,
F,
F6
A Horse Race of Alternative Monetary Policy Regimes Under Bounded Rationality
Staff Discussion Paper 2022-4
Joel Wagner,
Tudor Schlanger,
Yang Zhang
We introduce bounded rationality in a canonical New Keynesian model calibrated to match Canadian macroeconomic data since Canada’s adoption of inflation targeting. We use the model to quantitatively assess the macroeconomic impact of alternative monetary policy regimes.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Economic models,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E2,
E27,
E3,
E4,
E5,
E52,
E58
Monetary Policy and Redistribution in Open Economies
Staff Working Paper 2022-6
Xing Guo,
Pablo Ottonello,
Diego Perez
We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rate regimes,
Monetary policy
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4,
F41,
F44
Payment Coordination and Liquidity Efficiency in the New Canadian Wholesale Payments System
Staff Discussion Paper 2022-3
Francisco Rivadeneyra,
Nellie Zhang
We study the impact of the Bank of Canada’s choice of settlement mechanism in Lynx on participant behaviors, liquidity usage, payment delays and the overall operational efficiency of the new system.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Payment clearing and settlement systems
JEL Code(s):
C,
C5,
E,
E4,
E42,
E5,
E58
Heterogeneity and Monetary Policy: A Thematic Review
Staff Discussion Paper 2022-2
Felipe Alves,
Christian Bustamante,
Xing Guo,
Katya Kartashova,
Soyoung Lee,
Thomas Michael Pugh,
Kurt See,
Yaz Terajima,
Alexander Ueberfeldt
The theory that rich economic diversity of businesses and households both affects and is shaped by economy-wide fluctuations has strong implications for monetary policy. This review places these insights in a Canadian context.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Monetary policy and uncertainty,
Monetary policy transmission
JEL Code(s):
D,
D2,
D25,
D3,
D31,
E,
E2,
E22,
E24,
E5,
E50,
E52
On the Wedge Between the PPI and CPI Inflation Indicators
Staff Working Paper 2022-5
Shang-Jin Wei,
Yinxi Xie
We find that the CPI and PPI inflation indexes co-moved strongly throughout the late 20th century, but their correlation has fallen substantially since the early 2000s. We offer a structural explanation for this divergence based on the growth of global supply chains since 2000. This finding offers a unique perspective for the future design of optimal monetary policy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation targets,
International topics,
Monetary policy
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58,
F,
F1,
F11,
F12,
F4,
F41,
F6,
F62
The Financial Origins of Non-fundamental Risk
Staff Working Paper 2022-4
Sushant Acharya,
Keshav Dogra,
Sanjay Singh
We explore the idea that the financial sector can be a source of non-fundamental risk to the rest of the economy. We also consider whether policy can be used to reduce this risk—either by increasing the supply of publicly backed safe assets or by reducing the demand for safe assets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Financial markets,
Financial stability
JEL Code(s):
D,
D5,
D52,
D8,
D84,
E,
E6,
E62,
G,
G1,
G10,
G12
Assessing Climate-Related Financial Risk: Guide to Implementation of Methods
Technical Report No. 120
Hossein Hosseini,
Craig Johnston,
Craig Logan,
Miguel Molico,
Xiangjin Shen,
Marie-Christine Tremblay
A pilot project on climate transition scenarios by the Bank of Canada and the Office of the Superintendent of Financial Institutions assessed climate-related credit and market risks. This report describes the project’s methodologies and provides guidance on implementing them.
Content Type(s):
Staff research,
Technical reports
Topic(s):
Climate change,
Credit and credit aggregates,
Econometric and statistical methods,
Financial stability
JEL Code(s):
C,
C5,
C53,
C8,
C83,
G,
G1,
G3,
G32
Transition Scenarios for Analyzing Climate-Related Financial Risk
Staff Discussion Paper 2022-1
Y.-H. Henry Chen,
Erik Ens,
Olivier Gervais,
Hossein Hosseini,
Craig Johnston,
Serdar Kabaca,
Miguel Molico,
Sergey Paltsev,
Alex Proulx,
Argyn Toktamyssov
Climate transition scenarios clarify climate-related risks to our economy and financial system. This paper summarizes key results of Canada-relevant scenarios developed in a pilot project on climate risk by the Bank of Canada and the Office of the Superintendent of Financial Institutions.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Climate change,
Economic models,
Financial stability,
International topics
JEL Code(s):
C,
C6,
C68,
D,
D5,
D58,
E,
E5,
E50,
O,
O4,
O44,
P,
P1,
P18,
Q,
Q5,
Q54