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786
result(s)
Stress Relief? Funding Structures and Resilience to the Covid Shock
Staff Working Paper 2023-7
Kristin Forbes,
Christian Friedrich,
Dennis Reinhardt
Funding structures affected the amount of financial stress different countries and sectors experienced during the spread of COVID-19 in early 2020. Policy responses targeting specific vulnerabilities were more effective at mitigating this stress than those supporting banks or the economy more broadly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Exchange rates,
Financial institutions,
Financial stability,
Financial system regulation and policies,
International topics
JEL Code(s):
E,
E4,
E44,
E6,
E65,
F,
F3,
F31,
F36,
F4,
F42,
G,
G1,
G18,
G2,
G23,
G3,
G38
Risk Amplification Macro Model (RAMM)
Technical Report No. 123
Kerem Tuzcuoglu
The Risk Amplification Macro Model (RAMM) is a new nonlinear two-country dynamic model that captures rare but severe adverse shocks. The RAMM can be used to assess the financial stability implications of both domestic and foreign-originated risk scenarios.
Content Type(s):
Staff research,
Technical reports
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Financial stability,
Monetary policy transmission
JEL Code(s):
C,
C5,
C51,
E,
E3,
E37,
E4,
E44,
F,
F4,
F44
The 2021–22 Surge in Inflation
Staff Discussion Paper 2023-3
Oleksiy Kryvtsov,
James (Jim) C. MacGee,
Luis Uzeda
The rise in inflation in 2021–22 sparked a growing literature and debate over the causes of the surge as well as the near- and medium-term path for inflation. This review offers three key messages.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation and prices,
Inflation targets,
Monetary policy
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58
Macroeconomic Disasters and Consumption Smoothing: International Evidence from Historical Data
Staff Working Paper 2023-4
Lorenzo Pozzi,
Barbara Sadaba
Does consumption smoothing fundamentally decrease during macroeconomic disasters? This paper uses a large historical dataset (1870–2016) for 16 industrial economies to show that during macroeconomic disasters (e.g., wars, pandemics, depressions) aggregate consumption and income are significantly less decoupled than during normal times.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Coronavirus disease (COVID-19),
Econometric and statistical methods
JEL Code(s):
C,
C2,
C23,
E,
E2,
E21
Are Temporary Oil Supply Shocks Real?
Staff Working Paper 2022-52
Johan Brannlund,
Geoffrey R. Dunbar,
Reinhard Ellwanger
Hurricanes disrupt oil production in the Gulf of Mexico because producers shut in oil platforms to safeguard lives and prevent damage. We examine the effects of these temporary oil supply shocks on real economic activity in the United States.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E32,
Q,
Q3,
Q31,
Q4,
Q41,
Q43
CANVAS: A Canadian Behavioral Agent-Based Model
Staff Working Paper 2022-51
Cars Hommes,
Mario He,
Sebastian Poledna,
Melissa Siqueira,
Yang Zhang
The Bank of Canada’s current suite of models faces challenges in addressing network effects that integrate household and firm-level heterogeneity and their behaviours. We develop CANVAS, a Canadian behavioural agent-based model to contribute to the Bank’s next-generation modelling effort. CANVAS improves forecasting performance and expands capacity for model-based scenario analysis.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Econometric and statistical methods,
Economic models,
Firm dynamics,
Inflation and prices
JEL Code(s):
C,
D,
D2,
D22,
D8,
D83,
E,
E1,
E17
Potential benefits and key risks of fiat-referenced cryptoassets
Staff Analytical Note 2022-20
Hugh Ding,
Natasha Khan,
Bena Lands,
Cameron MacDonald,
Laura Zhao
Cryptoassets that reference a national currency (commonly known as stablecoins) aim to peg their value to the reference currency and typically use a reserve of traditional financial assets to maintain the peg. The market value of these fiat-referenced cryptoassets has grown more than thirtyfold between early 2020 and mid-2022. We explore some of their potential benefits and key risks.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial markets,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
G,
G2,
G28,
L,
O,
O3
Stablecoins and Their Risks to Financial Stability
Staff Discussion Paper 2022-20
Cameron MacDonald,
Laura Zhao
What risks could stablecoins pose to the financial system? We argue that the stabilization mechanisms of stablecoins give rise to the risk of confidence runs, which can propagate to broader cryptoasset markets and the traditional financial sector. We also argue that stablecoins can contribute to financial stability risks by facilitating the buildup of leverage and liquidity mismatch in decentralized finance. Such risks cannot be addressed by ensuring the price stability of stablecoins alone. Finally, we explore the potential implications of stablecoins for the current system of bank-intermediated credit and for monetary policy.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial markets,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E4,
E42,
E44,
E5,
E58,
G,
G2,
G23
Are Working Hours Complements in Production?
Staff Working Paper 2022-47
Lin Shao,
Faisal Sohail,
Emircan Yurdagul
Using Canadian matched employer-employee data, we show that working hours of different workers are gross complements in production rather than perfect substitutes, as is typically assumed by macroeconomic models of production.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Labour markets
JEL Code(s):
E,
E2,
E23,
J,
J2,
J22,
J23,
J3,
J31