Staff discussion papers are completed staff research studies on a wide variety of subjects relevant to central bank policy.
284
result(s)
Reviewing Canada’s Monetary Policy Implementation System: Does the Evolving Environment Support Maintaining a Floor System?
Staff Discussion Paper 2023-10
Toni Gravelle,
Ron Morrow,
Jonathan Witmer
At the onset of the pandemic, the Bank of Canada transitioned its framework for monetary policy implementation from a corridor system to a floor system, which it has since decided to maintain. We provide a comprehensive analysis of both frameworks and assess their relative merits based on five key criteria that define a sound framework.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Market structure and pricing,
Monetary policy implementation,
Payment clearing and settlement systems
JEL Code(s):
D,
D4,
D47,
E,
E4,
E42,
E5,
E58
A Review of the Bank of Canada’s Support of Key Financial Markets During the COVID-19 Crisis
Staff Discussion Paper 2023-9
Joshua Fernandes,
Michael Mueller
The COVID-19 pandemic placed unprecedented strain on the global financial system. We describe how the Bank of Canada responded to the rapidly deteriorating liquidity in core Canadian fixed-income markets.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Coronavirus disease (COVID-19),
Financial markets,
Market structure and pricing,
Monetary policy and uncertainty
JEL Code(s):
E,
E4,
E44,
E5,
E58,
G,
G0,
G01
Turning Words into Numbers: Measuring News Media Coverage of Shortages
Staff Discussion Paper 2023-8
Lin Chen,
Stephanie Houle
We develop high-frequency, news-based indicators using natural language processing methods to analyze news media texts. Our indicators track both supply (raw, intermediate and final goods) and labour shortages over time. They also provide weekly time-varying topic narratives about various types of shortages.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Coronavirus disease (COVID-19),
Econometric and statistical methods,
Monetary policy and uncertainty,
Recent economic and financial developments
JEL Code(s):
C,
C5,
C55,
C8,
C82,
E,
E3,
E37
What Consistent Responses on Future Inflation by Consumers Can Reveal
Staff Discussion Paper 2023-7
Sarah Miller,
Patrick Sabourin
We analyze factors that may explain consistent answers to questions about inflation expectations in the Canadian Survey of Consumer Expectations. We also compare the inflation forecasts of consumers with consistent responses with those of professional forecasters.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Inflation and prices
JEL Code(s):
D,
D8,
D80,
D84,
E,
E3,
E31
A Review of the Bank of Canada’s Market Operations Related to COVID-19
Staff Discussion Paper 2023-6
Grahame Johnson
This paper reviews the range of extraordinary programs launched by the Bank of Canada in response to the pandemic-related financial market disruption. It provides some recommendations for future interventions to ensure the programs are appropriately structured for the financial and economic stresses they are intended to address.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Coronavirus disease (COVID-19),
Financial markets,
Financial stability
JEL Code(s):
D,
D4,
D47,
E,
E4,
E41,
E5,
G,
G0,
G01,
G1,
G14,
G2,
G21,
G23,
H,
H1,
H12
The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model
Staff Discussion Paper 2023-5
Martin Kuncl,
Dmitry Matveev
We use a small open economy model with overlapping generations to evaluate secular dynamics of the neutral rate in Canada from 1980 to 2018. We find that changes in both foreign and domestic factors resulted in a protracted decline in the neutral rate.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Interest rates,
Monetary policy
JEL Code(s):
E,
E2,
E21,
E22,
E4,
E43,
E5,
E50,
E52,
E58,
F,
F4,
F41
Central Bank Digital Currencies and Banking: Literature Review and New Questions
Staff Discussion Paper 2023-4
James Chapman,
Jonathan Chiu,
Mohammad Davoodalhosseini,
Janet Hua Jiang,
Francisco Rivadeneyra,
Yu Zhu
We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending and liquidity and maturity transformation. We also take a broader look at CBDCs and highlight two promising directions for future research.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E5,
E50,
E58,
G,
G0,
G00,
L,
L0,
L00
The 2021–22 Surge in Inflation
Staff Discussion Paper 2023-3
Oleksiy Kryvtsov,
James (Jim) C. MacGee,
Luis Uzeda
The rise in inflation in 2021–22 sparked a growing literature and debate over the causes of the surge as well as the near- and medium-term path for inflation. This review offers three key messages.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation and prices,
Inflation targets,
Monetary policy
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58
Summaries of Central Bank Policy Deliberations: A Canadian Context
Staff Discussion Paper 2023-2
Monica Jain,
Walter Muiruri,
Jonathan Witmer,
Sharon Kozicki,
Jeremy Harrison
This paper provides the context, rationale and key considerations that informed the Bank of Canada’s decision to publish a summary of monetary policy deliberations. It includes an analysis of how other central banks disclose minutes and summaries of their monetary policy deliberations.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Monetary policy communications
JEL Code(s):
D,
D8,
D83,
E,
E5,
E58