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2360
result(s)
Are Long-Horizon Expectations (De-)Stabilizing? Theory and Experiments
Staff Working Paper 2019-27
George Evans,
Cars Hommes,
Isabelle Salle,
Bruce McGough
Most models in finance assume that agents make trading plans over the infinite future. We consider instead that they are boundedly rational and may only form forecasts over a limited horizon.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Central bank research,
Economic models,
Financial markets
JEL Code(s):
C,
C9,
C92,
D,
D8,
D84,
E
An Application of Shapley Value Cost Allocation to Liquidity Savings Mechanisms
Staff Working Paper 2019-26
Rodney J. Garratt
Liquidity demands in real-time gross settlement payment systems can be enormous. To reduce the liquidity requirement, central banks around the world have implemented liquidity savings mechanisms (LSMs).
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Payment clearing and settlement systems
JEL Code(s):
C,
C7,
C72,
E,
E5,
E58
Explaining Unusual Cash Patterns in 2018
Staff Analytical Note 2019-22
Walter Engert,
Ben Fung,
Jozsef Molnar,
Gradon Nicholls
There was an unusually large decline of bank notes in circulation in October 2018. Some have argued that this was due to the legalization of cannabis in Canada in mid-October.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E58
Lending Standards, Productivity and Credit Crunches
Staff Working Paper 2019-25
Jonathan Swarbrick
We propose a macroeconomic model in which adverse selection in investment drives the amplification of macroeconomic fluctuations, in line with prominent roles played by the credit crunch and collapse of the asset-backed security market in the financial crisis.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Financial markets,
Financial stability,
Interest rates,
Productivity
JEL Code(s):
E,
E2,
E22,
E3,
E32,
E4,
E44,
G,
G0,
G01
Privacy as a Public Good: A Case for Electronic Cash
Staff Working Paper 2019-24
Rodney J. Garratt,
Maarten van Oordt
Cash gives users a high level of privacy when making payments, but the use of cash to make payments is declining. People increasingly use debit cards, credit cards or other methods to pay.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Central bank research,
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
G,
G2,
G28
How Oil Supply Shocks Affect the Global Economy: Evidence from Local Projections
Staff Discussion Paper 2019-6
Olivier Gervais
We provide empirical evidence on the impact of oil supply shocks on global aggregates. To do this, we first extract structural oil supply shocks from a standard oil-price determination model found in the literature.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
International topics
JEL Code(s):
C,
C2,
C22,
C5,
E,
E3,
E37,
Q,
Q4,
Q43
The Effects of Inflation Targeting for Financial Development
Staff Analytical Note 2019-21
Geoffrey R. Dunbar,
Amy (Qijia) Li
The adoption of inflation targeting (IT) by central banks leads to an increase of 10 to 20 percent in measures of financial development, with a lag. We also find evidence that the financial sector benefits of IT adoption were higher for early-adopting central banks.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial institutions,
Inflation targets,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E58
Canadian Securities Lending Market Ecology
Staff Discussion Paper 2019-5
Jesse Johal,
Joanna Roberts,
John Sim
This is the fourth of the Financial Markets Department’s descriptions of Canadian financial industrial organization. The paper discusses the organization of the securities lending market in Canada. We outline key characteristics of securities lending contracts, participants in the securities lending market, the market infrastructures that support securities lending activities, and aggregated statistics describing the Canadian market.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial institutions,
Financial markets,
Financial system regulation and policies,
Market structure and pricing
JEL Code(s):
G,
G1,
G18,
G2,
G21,
G23
The Impact of a Trade War: Assessment of the Current Tariffs and Alternative Scenarios
Staff Analytical Note 2019-20
Karyne B. Charbonneau
This note uses Charbonneau and Landry’s (2018) framework to assess the direct impact of the current trade tensions on the Canadian and global economies, as well as possible implications if the conflict escalates further. Overall, my findings show that the estimated impact of current tariffs on real gross domestic product (GDP) remains relatively small, which is in line with the literature on gains from trade, but the impact on trade is much larger.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Recent economic and financial developments,
Trade integration
JEL Code(s):
F,
F1,
F11,
F13,
F14,
F15,
F5,
F50,
F6,
F62,
F68