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2400
result(s)
The Complex Adjustment of the Canadian Economy to Lower Commodity Prices
Staff Analytical Note 2016-1
Julien Champagne,
Nikita Perevalov,
Hope Pioro,
Dany Brouillette,
Andrew Agopsowicz
In this analytical note, we provide a comprehensive assessment of the complex structural adjustment facing the Canadian economy following the commodity price decline since mid-2014. We quantify separately the impacts coming from the commodity sector restructuring and the broader effect of significantly lower terms of trade.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Business fluctuations and cycles,
Exchange rates,
Labour markets,
Potential output,
Recent economic and financial developments
JEL Code(s):
E,
E1,
E17,
E2,
E27,
E5,
E52,
J,
J2,
Q,
Q0,
Q00
Debt Overhang and Deleveraging in the US Household Sector: Gauging the Impact on Consumption
Staff Working Paper 2015-47
Bruno Albuquerque,
Georgi Krustev
Using a novel dataset for the US states, this paper examines whether household debt and the protracted debt deleveraging help explain the dismal performance of US consumption since 2007, in the aftermath of the housing bubble.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Econometric and statistical methods,
International topics
JEL Code(s):
C,
C1,
C13,
C2,
C23,
C5,
C52,
D,
D1,
D12,
H,
H3,
H31
December 15, 2015
Indebted Households and Potential Vulnerabilities for the Canadian Financial System: A Microdata Analysis
Over the past decade, an increasing proportion of households in Canada have become highly indebted relative to their income. These highly indebted households now hold one-fifth of total Canadian household debt.Simulations suggest that this greater degree of household indebtedness could exacerbate the impact of shocks to income and interest rates relative to the pre-crisis period. However, an assessment of the vulnerability of the Canadian financial system should, among other factors, account for the ability of Canadian financial institutions to withstand losses from the household sector.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Credit and credit aggregates,
Financial stability,
Housing,
Recent economic and financial developments
JEL Code(s):
D,
D1,
D14,
E,
E5,
E51
December 15, 2015
Residential Mortgage Securitization in Canada: A Review
Residential mortgage securitization plays an important role in the Canadian system of housing finance, especially given the rising share of government-supported (i.e., public) securitization over the past 15 years. Mordel and Stephens analyze the evolution of two types of mortgage securitization in Canada— private and public — focusing in particular on the underlying public policy and economic benefits of the latter. They review the potential implications of the extent of public securitization and conclude with a discussion of policies that could be considered to reinvigorate private securitization in Canada.
Content Type(s):
Publications,
Financial System Review articles
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies,
Housing
JEL Code(s):
G,
G2,
G28
Credit Cards: Disentangling the Dual Use of Borrowing and Spending
Staff Analytical Note 2015-3
Olga Bilyk,
Brian Peterson
Over the past 15 years, aggregate credit card balances have been increasing, except for a brief spell in the aftermath of the 2007–09 financial crisis. Determining whether the growing balances are due to increased usage of credit cards as a method of payment or whether they reflect increased short-term borrowing is challenging because aggregate balances are snapshots of charges on credit cards before households make their monthly payments.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Financial stability
Tractable Term Structure Models
Staff Working Paper 2015-46
Bruno Feunou,
Jean-Sébastien Fontaine,
Anh Le,
Christian Lundblad
We introduce a new framework that facilitates term structure modeling with both positive interest rates and flexible time-series dynamics but that is also tractable, meaning amenable to quick and robust estimation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Interest rates,
International financial markets,
International topics,
Monetary policy and uncertainty,
Monetary policy transmission
JEL Code(s):
G,
G1,
G12
Estimating Canada’s Effective Lower Bound
Staff Analytical Note 2015-2
Jonathan Witmer,
Jing Yang
In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Monetary policy framework,
Monetary policy implementation
JEL Code(s):
D,
D5,
D53,
E,
E4,
E41,
E43,
E5,
E58
Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries
Staff Working Paper 2015-45
Gabriel Bruneau,
Kevin Moran
We estimate the link between exchange rate fluctuations and the labour input of Canadian manufacturing industries. The analysis is based on a dynamic model of labour demand, and the econometric strategy employs a panel two-step approach for cointegrating regressions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rate regimes,
Exchange rates,
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
F,
F1,
F14,
F16,
F3,
F31,
F4,
F41,
J,
J2,
J23
Emergency Liquidity Facilities, Signalling and Funding Costs
Staff Working Paper 2015-44
Céline Gauthier,
Alfred Lehar,
Héctor Pérez Saiz,
Moez Souissi
In the months preceding the failure of Lehman Brothers in September 2008, banks were willing to pay a premium over the Federal Reserve’s discount window (DW) rate to participate in the much less flexible Term Auction Facility (TAF). We empirically test the predictions of a new signalling model that offers a rationale for offering two different liquidity facilities.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Lender of last resort
JEL Code(s):
G,
G0,
G01,
G2,
G21,
G28