Staff discussion papers are completed staff research studies on a wide variety of subjects relevant to central bank policy.
283
result(s)
Limits to Arbitrage and Deviations from Covered Interest Rate Parity
Staff Discussion Paper 2016-4
James Pinnington,
Maral Shamloo
We document an increase in deviations from short-term covered interest rate parity (CIP) in the first half of 2015. Since the Swiss National Bank’s (SNB) decision to abandon its minimum exchange rate policy, both the magnitude and volatility of deviations from CIP have increased across several currency pairs. The effect is particularly pronounced for pairs involving the Swiss franc.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Exchange rates,
International financial markets
JEL Code(s):
F,
F3,
F31,
G,
G1,
G15
New Housing Registrations as a Leading Indicator of the BC Economy
Staff Discussion Paper 2016-3
Calista Cheung,
Dmitry Granovsky
Housing starts and building permits data are commonly used as leading indicators of economic activity. In British Columbia, all new homes must be registered with the Homeowner Protection Office, a branch of BC Housing, before the issuance of building permits and the start of construction.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Housing,
Regional economic developments
JEL Code(s):
C,
C1,
C13,
C5,
C53,
E,
E3,
E32,
E37
Extending the Labour Market Indicator to the Canadian Provinces
Staff Discussion Paper 2016-2
Alexander Fritsche,
Katherine Ragan
Calculating the labour market indicator (LMI) at the provincial level provides useful insights into Canada’s regional economies and reveals differing trends in the state of underlying labour market conditions across provinces. Conclusions based on the Canadian LMI do not necessarily translate to the provinces. In most cases, the correlations between the provincial LMIs and the underlying labour market variables have the expected sign.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
E27,
J,
J2,
J21,
J23
A New Measure of the Canadian Effective Exchange Rate
Staff Discussion Paper 2016-1
Russell Barnett,
Karyne B. Charbonneau,
Guillaume Poulin-Bellisle
Canada’s international competitiveness has received increasing attention in recent years as exports have fallen short of expectations and Canada has lost market share. This paper asks whether the Bank of Canada’s current effective exchange rate measure, the CERI, is still an accurate measure of Canada’s international competitiveness.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Exchange rates,
International topics
JEL Code(s):
F,
F1,
F3,
F31
Reputational Risk Management in Central Banks
Staff Discussion Paper 2015-16
Jill Vardy
This paper discusses reputational risk in the context of central banking and explains why it matters to central banks. It begins with a general discussion of reputational risk within the broader framework of risk management.
Content Type(s):
Staff discussion papers
Topic(s):
Credibility,
International topics,
Monetary policy implementation
JEL Code(s):
E,
E5,
E52,
E58
Forward Guidance at the Effective Lower Bound: International Experience
Staff Discussion Paper 2015-15
Karyne B. Charbonneau,
Lori Rennison
Forward guidance is one of the policy tools that a central bank can implement if it seeks to provide additional monetary stimulus when it is operating at the effective lower bound (ELB) on interest rates. It became more widely used during and after the global financial crisis.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Monetary policy and uncertainty,
Monetary policy communications,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
E5,
E52,
E58,
E6
Quantitative Easing as a Policy Tool Under the Effective Lower Bound
Staff Discussion Paper 2015-14
Abeer Reza,
Eric Santor,
Lena Suchanek
This paper summarizes the international evidence on the performance of quantitative easing (QE) as a monetary policy tool when conventional policy rates are constrained by the effective lower bound (ELB). A large body of evidence suggests that expanding the central bank’s balance sheet through large-scale asset purchases can provide effective stimulus under the ELB.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
International topics,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E61,
E65,
N,
N1,
N10
The International Experience with Negative Policy Rates
Staff Discussion Paper 2015-13
Harriet Jackson
A key issue in the renewal of the inflation-control agreement is the question of the appropriate level of the inflation target. Many observers have raised concerns that with the reduction in the neutral rate, and the experience of the recent financial crisis, the effective lower bound (ELB) is more likely to be binding in the future if inflation targets remain at 2 per cent.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Financial markets,
International topics,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E65
A Comprehensive Evaluation of Measures of Core Inflation for Canada
Staff Discussion Paper 2015-12
Mikael Khan,
Louis Morel,
Patrick Sabourin
This paper evaluates the usefulness of various measures of core inflation for the conduct of monetary policy. Traditional exclusion-based measures of core inflation are found to perform relatively poorly across a range of evaluation criteria, in part due to their inability to filter unanticipated transitory shocks.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation and prices,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52