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1901
result(s)
The Paul Storer Memorial Lecture—Cross-Border Trade Integration and Monetary Policy
Staff Discussion Paper 2016-20
Stephen S. Poloz
In this paper we explore the nexus between cross-border trade integration and monetary policy. We first review the evidence that trade liberalization has increased the degree of integration in North America and conclude that, while robust structural inferences remain elusive, there is sufficient supporting evidence for central banks to treat the issue seriously.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Monetary policy,
Trade integration
JEL Code(s):
E,
E3,
E37,
E5,
F,
F1,
F4,
F41,
F6
On What States Do Prices Depend? Answers from Ecuador
Staff Working Paper 2016-43
Craig Benedict,
Mario J. Crucini,
Anthony Landry
In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
E,
E3,
E5,
F,
F3,
F33
A Primer on Neo-Fisherian Economics
Staff Analytical Note 2016-14
Robert Amano,
Thomas J. Carter,
Rhys R. Mendes
Conventional models imply that central banks aiming to raise inflation should lower nominal rates and thus stimulate aggregate demand. However, several economists have recently challenged this conventional wisdom in favour of an alternative “neo-Fisherian’’ view under which higher nominal rates might in fact lead to higher inflation.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Economic models,
Inflation and prices,
Interest rates,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E4,
E5
The Global Benefits of Low Oil Prices: More Than Meets the Eye
Staff Analytical Note 2016-13
Robert Fay,
Justin-Damien Guénette,
Louis Morel
Between mid-2014 and early 2016, oil prices fell by roughly 65 per cent. This note documents the channels through which this oil price decline is expected to affect the global economy. One important and immediate channel is through higher expenditures, especially in net oil-importing countries.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Business fluctuations and cycles,
International topics,
Recent economic and financial developments
JEL Code(s):
E,
E3,
E32,
E37,
F,
F0,
F01,
Q,
Q4,
Q43
Implementing Cross-Border Interbank Lending in BoC-GEM-FIN
Staff Discussion Paper 2016-19
Malik Shukayev,
Argyn Toktamyssov
BIS interbank lending data show that the Great Recession generated large and persistent changes in the international interbank lending positions of various countries. The main objective of this study is to understand the role of changes in international interbank credit flows in transmitting shocks across borders.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E2,
E27,
E3,
E37,
F,
F4,
F47
Household Risk Assessment Model
Technical Report No. 106
Brian Peterson,
Tom Roberts
Household debt can be an important source of vulnerability to the financial system. This technical report describes the Household Risk Assessment Model (HRAM) that has been developed at the Bank of Canada to stress test household balance sheets at the individual level.
Content Type(s):
Staff research,
Technical reports
Topic(s):
Financial stability,
Housing,
Sectoral balance sheet
JEL Code(s):
C,
C0,
C6,
C63,
C65,
D,
D0,
D1,
D14
Using Speed and Credit Limits to Address the Procyclicality of Initial Margin at Central Counterparties
Staff Discussion Paper 2016-18
Nikil Chande,
Nicholas Labelle
This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Financial stability,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
G,
G1,
G18
On the Value of Virtual Currencies
Staff Working Paper 2016-42
Wilko Bolt,
Maarten van Oordt
This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Digital currencies and fintech,
Exchange rates
JEL Code(s):
E,
E4,
E42,
E5,
E51,
F,
F3,
F31,
G,
G1
The Impact of Macroprudential Housing Finance Tools in Canada: 2005–10
Staff Working Paper 2016-41
Jason Allen,
Timothy Grieder,
Brian Peterson,
Tom Roberts
This paper combines loan-level administrative data with household-level survey data to analyze the impact of recent macroprudential policy changes in Canada using a microsimulation model of mortgage demand of first-time homebuyers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial system regulation and policies
JEL Code(s):
C,
C6,
C63,
D,
D1,
D14,
G,
G2,
G28