Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
2360
result(s)
Supervising Financial Regulators
Staff Working Paper 2016-52
Josef Schroth
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial stability,
Financial system regulation and policies,
Regional economic developments
JEL Code(s):
E,
E4,
E44,
G,
G2,
G28,
H,
H7
Central Bank Digital Currencies: A Framework for Assessing Why and How
Staff Discussion Paper 2016-22
Ben Fung,
Hanna Halaburda
Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Digital currencies and fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42
The Share of Systematic Variations in the Canadian Dollar—Part I
Staff Analytical Note 2016-15
Jean-Sébastien Fontaine,
Guillaume Nolin
In this analytical note we show that the share of the systematic variations in the Canadian dollar has risen significantly in the past two decades. Systematic variations in the exchange rate are shared with other currencies. This parallels the equity market, where variations in the price of a given stock are shared with variations in the prices of other stocks.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Exchange rates
JEL Code(s):
F,
F3,
F31
Firm-Specific Shocks and Aggregate Fluctuations
Staff Working Paper 2016-51
Leonid Karasik,
Danny Leung,
Ben Tomlin
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Firm dynamics,
Market structure and pricing
JEL Code(s):
E,
E2,
E22,
E23,
E24,
E3,
L,
L6
Broker Routing Decisions in Limit Order Markets
Staff Working Paper 2016-50
David Cimon
The primary focus of this paper is to study conflict of interest in the brokerage market. Brokers face a conflict of interest when the commissions they receive from investors differ from the costs imposed by different trading venues.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Market structure and pricing
JEL Code(s):
G,
G2,
G24,
G28
November 17, 2016
Structural Reforms and Economic Growth in Emerging-Market Economies
Growth has slowed in many emerging-market economies (EMEs) since the 2007–09 global financial crisis, reflecting both cyclical and structural factors. In this context, it will be in-creasingly important for EMEs to raise potential growth by maintaining steady progress on structural reforms. How do structural reforms generally support growth? What are the re-form priorities for EMEs over recent history and today? Finally, what will be the impact of planned structural reforms on potential output growth among the world’s larger EMEs? These are some of the questions considered by the authors.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Development economics,
International topics,
Potential output
JEL Code(s):
E,
E0,
E02,
E6,
E61,
E65,
O,
O1,
O11,
O4,
O41
November 17, 2016
Commodity Price Supercycles: What Are They and What Lies Ahead?
Because commodity prices help determine Canada’s terms of trade, employment, income and, ultimately, inflation, it is important to understand what causes them to fluctuate. Since the early 1900s, there have been four commodity price supercycles—which we define as extended periods of boom and bust that can take decades to complete. Now in its downswing phase, the current supercycle started after growth in China and other emerging-market economies in the mid-1990s resulted in an unexpected demand shock. The extent of this downswing depends on numerous factors that are presently uncertain.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Econometric and statistical methods,
International topics
JEL Code(s):
C,
C1,
Q,
Q1,
Q4,
Q41
November 17, 2016
Recent Changes to the Bank of Canada’s Emergency Lending Assistance Policy
Emergency Lending Assistance (ELA) is a discretionary last-resort collateralized loan or ad-vance by the Bank of Canada to eligible financial institutions (FIs) and financial market infrastructures (FMIs) facing serious liquidity problems. In December 2015, the Bank revised its ELA policy to (i) replace the requirement for an FI’s solvency with the requirement for a credible recovery and resolution framework; (ii) include mortgages as eligible collateral; and (iii) clarify both the eligibility requirements for FMIs and provincially regulated deposit-taking FIs.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Financial stability,
Financial system regulation and policies,
Lender of last resort
JEL Code(s):
E,
E5,
E58,
G,
G0,
G01,
G2
November 17, 2016
Market Operations and Liquidity Provision at the Bank of Canada
The Bank of Canada’s framework for market operations and liquidity provision describes how and when central bank liquidity might be offered with regards to the implementation of monetary policy and for supporting the stability of the Canadian financial system. Market participants can therefore plan their transactions knowing that the Bank stands ready to help manage system liquidity to support its objectives for monetary policy and financial stability.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Financial markets,
Financial stability,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E52,
E58,
G,
G0,
G01