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2360
result(s)
Monetary Policy Implementation in a Negative Rate Environment
Staff Working Paper 2017-25
Michael Boutros,
Jonathan Witmer
Monetary policy implementation could, in theory, be constrained by deeply negative rates since overnight market participants may have an incentive to invest in cash rather than lend to other participants.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Interest rates,
Monetary policy framework,
Monetary policy implementation
JEL Code(s):
E,
E4,
E40,
E42,
E43,
G,
G0
Labour Force Participation: A Comparison of the United States and Canada
Staff Analytical Note 2017-9
James Ketcheson,
Natalia Kyui,
Benoit Vincent
This note explores the drivers behind the recent increase in the US participation rate in the labour market and assesses the likelihood of a similar gain in Canada. The growth in the US participation rate has largely been due to a pickup in the participation of prime-age workers following a post-recession decline.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
J,
J2,
J21
Wage Growth in Canada and the United States: Factors Behind Recent Weakness
Staff Analytical Note 2017-8
Dany Brouillette,
James Ketcheson,
Olena Kostyshyna,
Jonathan Lachaine
This note examines the relatively subdued pace of wage growth in Canada since the commodity price decline in 2014 and assesses whether the weakness is attributable to cyclical (e.g., labour market slack) or structural factors (e.g., resource reallocation and demographic change).
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
J,
J3,
J30
A Structural Interpretation of the Recent Weakness in Business Investment
Staff Analytical Note 2017-7
Russell Barnett,
Rhys R. Mendes
Since 2012, business investment growth has slowed considerably in advanced economies, averaging a little less than 2 per cent versus the 4 per cent growth rates experienced in the period leading up to crisis. Several recent studies have attributed a large part of the weakness in business investment to cyclical factors, including soft aggregate demand, and, to a lesser degree, heightened uncertainty and tighter financial conditions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Business fluctuations and cycles,
Domestic demand and components,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E22,
E3,
E37
Understanding Monetary Policy and its Effects: Evidence from Canadian Firms Using the Business Outlook Survey
Staff Working Paper 2017-24
Matthieu Verstraete,
Lena Suchanek
This paper shows (i) that business sentiment, as captured by survey data, matters for monetary policy decisions in Canada, and (ii) how business perspectives are affected by monetary policy shocks. Measures of business sentiment (soft data) are shown to have systematic explanatory power for monetary policy decisions over and above typical Taylor rule variables.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Interest rates,
Monetary policy transmission
JEL Code(s):
D,
D2,
D22,
E,
E4,
E44,
E5,
E52
Understanding the Cross‐Country Effects of US Technology Shocks
Staff Working Paper 2017-23
Thuy Lan Nguyen,
Wataru Miyamoto
Business cycles are substantially correlated across countries. Yet most existing models are not able to generate substantial transmission through international trade. We show that the nature of such transmission depends fundamentally on the features determining the responsiveness of labor supply and labor demand to international relative prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E3,
E30,
F,
F4,
F41,
F44,
F6,
F62
Detecting Scapegoat Effects in the Relationship Between Exchange Rates and Macroeconomic Fundamentals
Staff Working Paper 2017-22
Lorenzo Pozzi,
Barbara Sadaba
This paper presents a new testing method for the scapegoat model of exchange rates that aims to tighten the link between the theory on scapegoats and its empirical implementation. This new testing method consists of a number of steps.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rates,
International financial markets
JEL Code(s):
C,
C3,
C32,
F,
F3,
F31,
G,
G1,
G15
What Explains Month-End Funding Pressure in Canada?
Staff Discussion Paper 2017-9
Christopher S. Sutherland
The Canadian overnight repo market persistently shows signs of latent funding pressure around month-end periods. Both the overnight repo rate and Bank of Canada liquidity provision tend to rise in these windows. This paper proposes three non-mutually exclusive hypotheses to explain this phenomenon.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Interest rates,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E4,
E41,
E43,
E5,
E52,
E58,
F,
F3,
F36,
G,
G1,
G14,
G15,
G2,
G21
A Three‐Frequency Dynamic Factor Model for Nowcasting Canadian Provincial GDP Growth
Staff Discussion Paper 2017-8
Tony Chernis,
Gabriella Velasco,
Calista Cheung
This paper estimates a three‐frequency dynamic factor model for nowcasting Canadian provincial gross domestic product (GDP). Canadian provincial GDP is released by Statistics Canada on an annual basis only, with a significant lag (11 months).
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Regional economic developments
JEL Code(s):
C,
C5,
C53,
E,
E3,
E32,
E37,
R,
R1,
R11