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2358
result(s)
Occasionally Binding Constraints in Large Models: A Review of Solution Methods
Staff Discussion Paper 2021-5
Jonathan Swarbrick
Solving macroeconomic models is difficult. One challenge is the occasionally binding constraint of the zero lower bound on nominal interest rates. This paper reviews various ways to solve models that include this feature.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Economic models
JEL Code(s):
C,
C6
Non-bank financial intermediation in Canada: a pulse check
Staff Analytical Note 2021-2
Rohan Arora,
Guillaume Bédard-Pagé,
Philippe Besnier,
Hayden Ford,
Alan Walsh
The Canadian non-bank financial intermediation (NBFI) sector saw strong growth in 2018 and 2019. In 2020, COVID‑19 caused a financial shock. We provide a preliminary analysis on the impact of COVID‑19 on the sector as well as an update on its growth.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Coronavirus disease (COVID-19),
Financial institutions,
Financial markets,
Financial stability
JEL Code(s):
G,
G0,
G01,
G2,
G20,
G23
Secular Economic Changes and Bond Yields
Staff Working Paper 2021-14
Bruno Feunou,
Jean-Sébastien Fontaine
We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Interest rates,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E4,
E43,
G,
G1,
G12
Debt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-19
Staff Working Paper 2021-13
Jason Allen,
Robert Clark,
Shaoteng Li,
Nicolas Vincent
During the COVID-19 pandemic, Canadian financial institutions offered debt-relief programs to help borrowers cope with job losses and economic insecurity. We consider the low take-up rates for these programs and suggest that to be effective, such programs must be visible and easy to use.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Credit and credit aggregates,
Debt management
JEL Code(s):
G,
G3,
G31,
H,
H5
Complementarities Between Fiscal Policy and Monetary Policy—Literature Review
Staff Discussion Paper 2021-4
Wei Dong,
Geoffrey R. Dunbar,
Christian Friedrich,
Dmitry Matveev,
Romanos Priftis,
Lin Shao
This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Fiscal policy,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E62,
E63
Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework
Staff Working Paper 2021-12
Jiaqi Li
How do banks adjust their loan rate markup in response to macroeconomic shocks?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Financial institutions,
Interest rates
JEL Code(s):
E,
E3,
E32,
E4,
E44,
G,
G2,
G21,
L,
L1,
L13
A Generalized Endogenous Grid Method for Default Risk Models
Staff Working Paper 2021-11
Youngsoo Jang,
Soyoung Lee
Models with default options are hard to solve. We propose an extension of the endogenous grid method that solves default risk models more efficiently and accurately.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Credit risk management
JEL Code(s):
C,
C6,
C63,
E,
E3,
E37
Monetary Policy Pass-Through with Central Bank Digital Currency
Staff Working Paper 2021-10
Janet Hua Jiang,
Yu Zhu
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy transmission
JEL Code(s):
E,
E5,
E50,
E52
Cash and COVID-19: The Effects of Lifting Containment Measures on Cash Demand and Use
Staff Discussion Paper 2021-3
Heng Chen,
Walter Engert,
Kim Huynh,
Gradon Nicholls,
Julia Zhu
Using Bank Note Distribution System data on the demand for cash up to September 2020, we find that demand was strong. This is true even though cash use for payments declined early in the pandemic. When mobility restrictions and lockdown measures were eased, cash use for payments increased sharply but remained less popular than electronic methods of payment.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Central bank research,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O54