Staff discussion papers are completed staff research studies on a wide variety of subjects relevant to central bank policy.
284
result(s)
Repo Market Functioning when the Interest Rate Is Low or Negative
Staff Discussion Paper 2017-3
Jean-Sébastien Fontaine,
James Hately,
Adrian Walton
This paper investigates how a low or negative overnight interest rate might affect the Canadian repo markets. The main conclusion is that the repo market for general collateral will continue to function effectively.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Interest rates,
Market structure and pricing
JEL Code(s):
D,
D4,
G,
G1,
G10,
G12
Global Real Activity for Canadian Exports: GRACE
Staff Discussion Paper 2017-2
André Binette,
Tony Chernis,
Daniel de Munnik
Canadian exports have often disappointed since the Great Recession. The apparent disconnect between exports and the Bank of Canada’s current measure of foreign demand has created an impetus to search for an alternative.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Balance of payments and components,
Econometric and statistical methods,
Exchange rates
JEL Code(s):
F,
F1,
F10,
F14,
F4,
F43
An Improved Equation for Predicting Canadian Non-Commodity Exports
Staff Discussion Paper 2017-1
Patrick Alexander,
Jean-Philippe Cayen,
Alex Proulx
We estimate two new equations for Canadian non-commodity exports (NCX) that incorporate three important changes relative to the current equation used at the Bank of Canada.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Balance of payments and components,
Exchange rates,
International topics
JEL Code(s):
F,
F1,
F10,
F14,
F17
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 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
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
Implementing Cross-Border Interbank Lending in BoC-GEM-FIN
Staff Discussion Paper 2016-19
Malik Shukayev,
Argyn Toktamyssov
BIS interbank lending data show that the Great Recession generated large and persistent changes in the international interbank lending positions of various countries. The main objective of this study is to understand the role of changes in international interbank credit flows in transmitting shocks across borders.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E2,
E27,
E3,
E37,
F,
F4,
F47
Using Speed and Credit Limits to Address the Procyclicality of Initial Margin at Central Counterparties
Staff Discussion Paper 2016-18
Nikil Chande,
Nicholas Labelle
This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Financial stability,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
G,
G1,
G18
Leaning Within a Flexible Inflation-Targeting Framework: Review of Costs and Benefits
Staff Discussion Paper 2016-17
Denis Gorea,
Oleksiy Kryvtsov,
Tamon Takamura
This note examines the merits of monetary policy adjustments in response to financial stability concerns, taking into account changes in the state of knowledge since the renewal of the inflation-targeting agreement in 2011. A key financial system vulnerability in Canada is elevated household indebtedness: as more and more households are nearing their debt-capacity limits, the likelihood and severity of a large negative correction in housing markets are also increasing.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial stability,
Monetary policy framework
JEL Code(s):
E,
E0,
E4,
E44,
E5,
E52,
E58,
G,
G1,
G18