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786
result(s)
Exports and the Exchange Rate: A General Equilibrium Perspective
Staff Working Paper 2022-18
Patrick Alexander,
Abeer Reza
How do a country’s exports change when its currency depreciates? Does it matter which forces drive the exchange rate deprecation in the first place? We find that this relationship varies greatly depending on what drives exchange rate movements, and we conclude that the direct relationship between the exchange rate and exports is weak for Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Balance of payments and components,
Business fluctuations and cycles,
Exchange rate regimes,
Exchange rates,
International topics,
Monetary policy transmission,
Trade integration
JEL Code(s):
F,
F3,
F31,
F32,
F33,
F4,
F41
Household Heterogeneity and the Performance of Monetary Policy Frameworks
Staff Working Paper 2022-12
Edouard Djeutem,
Mario He,
Abeer Reza,
Yang Zhang
Consumption inequality and a low interest rate environment are two important trends in today’s economy. But the implications they may have—and how those implications interact—within different monetary policy frameworks are not well understood. We study the ranking of alternative frameworks that take these trends into account.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Monetary policy and uncertainty,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
D,
D3,
D31,
D5,
D52,
E,
E2,
E21,
E3,
E31,
E5,
E52,
E58
Central Bank Liquidity Facilities and Market Making
Staff Working Paper 2022-9
David Cimon,
Adrian Walton
We create a theoretical model of central bank asset purchases. The model helps explain how, in a crisis, these purchases ease pressures on investment dealers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Economic models,
Financial institutions,
Financial markets,
Market structure and pricing
JEL Code(s):
G,
G1,
G10,
G2,
G20,
L,
L1,
L10
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
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
Assessing Climate-Related Financial Risk: Guide to Implementation of Methods
Technical Report No. 120
Hossein Hosseini Jebeli,
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 Jebeli,
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
Firm Inattention and the Efficacy of Monetary Policy: A Text-Based Approach
Staff Working Paper 2022-3
Wenting Song,
Samuel Stern
How much attention do firms pay to macroeconomic news? Through a novel text-based measure, two facts emerge. First, attention is polarized. Most firms either never or always pay attention to economic conditions. Second, it is countercyclical. During recessions, more firms pay attention, and firms pay greater attention to macroeconomic news.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices,
Monetary policy
JEL Code(s):
D,
D8,
D83,
E,
E4,
E44,
E5,
E52
Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System
Staff Working Paper 2021-64
Neville Arjani,
Fuchun Li,
Zhentong Lu
Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C3,
E,
E4,
E42,
G,
G1,
G2,
G28