A Financial Stability Analysis of Zombie Firms in Canada
We measure the prevalence of zombie firms in Canada and assess how they could potentially affect the financial system.
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2441
result(s)
The Effect of Mortgage Rate Resets on Debt: Evidence from TransUnion (Part I)
Staff Analytical Note 2020-2
Katya Kartashova
This note studies how decreases in mortgage rates affect the behaviour of borrowers in terms of spending on durable goods and repaying debt.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Credit and credit aggregates,
Housing,
Interest rates,
Monetary policy,
Monetary policy transmission
JEL Code(s):
D,
D1,
D12,
D14,
E,
E4,
E43,
E5,
E52,
G,
G2,
G21,
R,
R3,
R31
The Power of Helicopter Money Revisited: A New Keynesian Perspective
Staff Discussion Paper 2020-1
Thomas J. Carter,
Rhys R. Mendes
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Credibility,
Economic models,
Fiscal policy,
Inflation targets,
Interest rates,
Monetary policy,
Monetary policy and uncertainty,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E1,
E12,
E4,
E41,
E43,
E5,
E51,
E52,
E58,
E6,
E61,
E63
A Spatial Model of Bank Branches in Canada
Staff Working Paper 2020-4
Heng Chen,
Matthew Strathearn
Using data on bank branch locations across Canada from 2008 to 2018, we explore an interesting aspect of bank branch competition—geographic concentration. We find that bank branch density does not correlate with geographic and market concentration; however, we do find strong correlation with postal-code demographics.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Firm dynamics,
Market structure and pricing
JEL Code(s):
L,
L1,
R,
R3
Characterizing Breadth in Canadian Economic Activity
Staff Analytical Note 2020-1
Taylor Webley,
Carla Valerio,
Maureen MacIsaac
Real growth in gross domestic product tends to be meaningfully higher when a large share of industries and demand components are growing—that is, when growth is broad across many fronts.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Business fluctuations and cycles
JEL Code(s):
E,
E3,
E32
Managing GDP Tail Risk
Staff Working Paper 2020-3
Thibaut Duprey,
Alexander Ueberfeldt
Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Central bank research,
Economic models,
Financial stability,
Financial system regulation and policies,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
D,
D8,
E,
E4,
E44,
E5,
E52,
E58,
G,
G0,
G01
Social Learning and Monetary Policy at the Effective Lower Bound
Staff Working Paper 2020-2
Jasmina Arifovic,
Alex Grimaud,
Isabelle Salle,
Gauthier Vermandel
This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Business fluctuations and cycles,
Central bank research,
Credibility,
Economic models,
Monetary policy,
Monetary policy communications
JEL Code(s):
C,
C8,
C82,
E,
E3,
E32,
E5,
E52
Contagion in Dealer Networks
Staff Working Paper 2020-1
Jean-Sébastien Fontaine,
Adrian Walton
Dealers connect investors who want to buy or sell securities in financial markets. Over time, dealers and investors form trading networks to save time and resources. An emerging field
of research investigates how networks form.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Financial markets,
Market structure and pricing,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
G,
G1,
G2,
G21,
L,
L1,
L14
Monetary Policy and Government Debt Dynamics Without Commitment
Staff Working Paper 2019-52
Dmitry Matveev
I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Fiscal policy,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E6,
E62,
E63
Technology Adoption in Input-Output Networks
Staff Working Paper 2019-51
Xintong Han,
Lei Xu
We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Economic models,
Firm dynamics,
Productivity
JEL Code(s):
C,
C6,
C61,
L,
L2,
L23,
L8,
L86,
O,
O1,
O14,
O3,
O33