November 17, 2016
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2360
result(s)
The Digital Economy—Insight from a Special Survey with IT Service Exporters
Staff Discussion Paper 2016-21
Wei Dong,
James Fudurich,
Lena Suchanek
Information technology (IT) is an increasingly integral part of everyday business and personal life reflecting the ongoing and accelerating digital transformation of the economy. In this paper, we present information gathered from a survey with export-oriented firms in the Canadian IT service industry and consultations with industry associations aimed at shedding light on this small but highly dynamic sector.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Firm dynamics,
Service sector
JEL Code(s):
D,
D2,
D22,
L,
L8,
L86,
O,
O3,
O33
Monetary Policy Tradeoffs Between Financial Stability and Price Stability
Staff Working Paper 2016-49
Malik Shukayev,
Alexander Ueberfeldt
We analyze the impact of interest rate policy on financial stability in an environment where banks can experience runs on their short-term liabilities, forcing them to sell assets at fire-sale prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
D,
D6,
D62,
E,
E3,
E32,
E4,
E44,
G,
G0,
G01
Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013
Staff Working Paper 2016-48
Thuy Lan Nguyen,
Wataru Miyamoto
Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E1,
E13,
E3,
E32,
F,
F4,
F41,
F44
Managing Risk Taking with Interest Rate Policy and Macroprudential Regulations
Staff Working Paper 2016-47
Simona Cociuba,
Malik Shukayev,
Alexander Ueberfeldt
We develop a model in which a financial intermediary’s investment in risky assets—risk taking—is excessive due to limited liability and deposit insurance and characterize the policy tools that implement efficient risk taking.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial system regulation and policies,
Monetary policy framework
JEL Code(s):
E,
E4,
E44,
E5,
E52,
G,
G1,
G11,
G18
Fragility of Resale Markets for Securitized Assets and Policy of Asset Purchases
Staff Working Paper 2016-46
Martin Kuncl
Markets for securitized assets were characterized by high liquidity prior to the recent financial crisis and by a sudden market dry-up at the onset of the crisis. A general equilibrium model with heterogeneous investment opportunities and information frictions predicts that, in boom periods or mild recessions, the degree of adverse selection in resale markets for securitized assets is limited because of the reputation-based guarantees by asset originators.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Economic models,
Financial markets,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E3,
E32,
E5,
G,
G0,
G01,
G2
Interpreting Volatility Shocks as Preference Shocks
Staff Working Paper 2016-45
Shaofeng Xu
This paper examines the relationship between volatility shocks and preference shocks in an analytically tractable endogenous growth model with recursive preferences and stochastic volatility. I show that there exists an explicit mapping between volatility shocks and preference shocks, and a rise in volatility generates the same impulse responses of macroeconomic aggregates as a negative preference shock.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models
JEL Code(s):
E,
E2,
E3
Financial Constraint and Productivity: Evidence from Canadian SMEs
Staff Working Paper 2016-44
Shutao Cao,
Danny Leung
The degree to which financial constraint is binding is often not directly observable in commonly used business data sets (e.g., Compustat). In this paper, we measure and estimate the likelihood of a firm being constrained by external financing using a data set of small- and medium-sized Canadian firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Productivity
JEL Code(s):
D,
D2,
D24,
G,
G3,
G32,
L,
L2,
L25
The Paul Storer Memorial Lecture—Cross-Border Trade Integration and Monetary Policy
Staff Discussion Paper 2016-20
Stephen S. Poloz
In this paper we explore the nexus between cross-border trade integration and monetary policy. We first review the evidence that trade liberalization has increased the degree of integration in North America and conclude that, while robust structural inferences remain elusive, there is sufficient supporting evidence for central banks to treat the issue seriously.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Monetary policy,
Trade integration
JEL Code(s):
E,
E3,
E37,
E5,
F,
F1,
F4,
F41,
F6
On What States Do Prices Depend? Answers from Ecuador
Staff Working Paper 2016-43
Craig Benedict,
Mario J. Crucini,
Anthony Landry
In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
E,
E3,
E5,
F,
F3,
F33