Average is Good Enough: Average-inflation Targeting and the ELB
The Great Recession and current pandemic have focused attention on the constraint on nominal interest rates from the effective lower bound.
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1512
result(s)
Ten Isn’t Large! Group Size and Coordination in a Large-Scale Experiment
Staff working paper 2020-30
Jasmina Arifovic,
Cars Hommes,
Anita Kopányi-Peuker,
Isabelle Salle
Economic activities typically involve coordination among a large number of agents. These agents have to anticipate what other agents think before making their own decisions.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
C,
C9,
C92,
D,
D8,
D83,
D9,
D90,
G,
G2,
G20
Research Theme(s):
Financial markets and funds management,
Market functioning,
Financial system,
Financial stability and systemic risk
Maturity Composition and the Demand for Government Debt
Staff working paper 2020-29
Jason Allen,
Jakub Kastl,
Milena Wittwer
The main objectives of debt management are to raise stable and low-cost funding to meet the government’s financial needs and to maintain a well-functioning market for government securities.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
C,
C1,
C14,
D,
D4,
D44,
E,
E5,
E58,
G,
G1,
G12
Research Theme(s):
Financial markets and funds management,
Funds management,
Market functioning,
Financial system,
Financial institutions and intermediation,
Models and tools,
Economic models
Non-competing Data Intermediaries
Staff working paper 2020-28
Shota Ichihashi
I study a model of competing data intermediaries (e.g., online platforms and data brokers) that collect personal data from consumers and sell it to downstream firms.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
D,
D4,
D42,
D43,
D8,
D80,
L,
L1,
L12
Research Theme(s):
Financial markets and funds management,
Market structure,
Models and tools,
Economic models,
Money and payments,
Digital assets and fintech
Why Fixed Costs Matter for Proof-of-Work Based Cryptocurrencies
Staff working paper 2020-27
Rodney J. Garratt,
Maarten van Oordt
Can Bitcoin survive? Some say it will become vulnerable to attacks as the rewards for processing Bitcoin transactions continue to decline. The economics of fixed costs suggest the specialized hardware used to mine Bitcoin may be key to its survival.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
G,
G1,
G10,
L,
L1,
L11
Research Theme(s):
Financial markets and funds management,
Market functioning,
Money and payments,
Digital assets and fintech
The potential effect of a central bank digital currency on deposit funding in Canada
Staff analytical note 2020-15
Alejandro García,
Bena Lands,
Xuezhi Liu,
Joshua Slive
A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E41,
E44,
E5,
G,
G1,
G10,
G17,
G2,
G21,
G3,
G32,
O
Research Theme(s):
Financial system,
Financial institutions and intermediation,
Financial stability and systemic risk,
Money and payments,
Digital assets and fintech
COVID-19 and bond market liquidity: alert, isolation and recovery
Staff analytical note 2020-14
Jean-Sébastien Fontaine,
Hayden Ford,
Adrian Walton
The disruption due to COVID-19 reverberated through the bond markets in three phases. In the first phase, dealers met the rising demand for liquidity. In the second, dealers reduced the supply of liquidity, and trading conditions worsened significantly. Finally, the market returned to relative stability following several interventions by the Bank of Canada.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4
Research Theme(s):
Financial markets and funds management,
Funds management,
Market functioning,
Financial system,
Financial stability and systemic risk
Cash and COVID-19: The impact of the pandemic on demand for and use of cash
Staff discussion paper 2020-6
Heng Chen,
Walter Engert,
Kim Huynh,
Gradon Nicholls,
Mitchell Nicholson,
Julia Zhu
Consumer spending declined significantly during the recent COVID-19 pandemic. This negative shock likely reduced spending across all methods of payment (cash, debit, credit, etc.). The mix of payment methods consumers use could also be affected. We study how the pandemic has influenced the demand for and use of cash. We also offer insights into the use of other payment methods, such as debit and credit cards.
Content Type(s):
Staff research,
Staff discussion papers
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O54
Research Theme(s):
Money and payments,
Cash and bank notes,
Retail payments
Monetary Policy Implementation and Payment System Modernization
Staff working paper 2020-26
Jonathan Witmer
Canada plans to adopt a retail payment system to allow Canadians to pay in real time (or near real time) 24 hours a day, 7 days a week. However, the traditional model for setting the overnight interest rate does not operate 24/7.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E4,
E40,
E42,
E43
Research Theme(s):
Monetary policy,
Monetary policy tools and implementation,
Money and payments,
Payment and financial market infrastructures
BoC-BoE Sovereign Default Database: What’s New in 2020?
Staff analytical note 2020-13
David Beers,
Elliot Jones,
John Walsh
The Boc–BoE database of sovereign debt defaults, published and updated annually by the Bank of Canada and the Bank of England, provides comprehensive estimates of stocks of government obligations in default. The 2020 edition includes a new section examining the scale of domestic arrears in 2018.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
F,
F3,
F34,
G,
G1,
G10,
G14,
G15
Research Theme(s):
Financial markets and funds management,
Funds management,
International markets and currencies,
Financial system,
Financial stability and systemic risk