May 17, 2021
Find our research on the financial system by keyword, author, content type, JEL code, topic or date of publication.
452
result(s)
Optimal Monetary and Macroprudential Policies
Staff Working Paper 2021-21
Josef Schroth
Optimal coordination of monetary and macroprudential policies implies higher risk weights on (safe) bonds any time that banks are required to hold additional capital buffers. Coordination also implies a somewhat tighter monetary-policy stance whenever such capital buffers are released.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial stability,
Financial system regulation and policies,
Inflation targets,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E6,
E60,
G,
G2,
G21,
G28
Secular Economic Changes and Bond Yields
Staff Working Paper 2021-14
Bruno Feunou,
Jean-Sébastien Fontaine
We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Interest rates,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E4,
E43,
G,
G1,
G12
Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework
Staff Working Paper 2021-12
Jiaqi Li
How do banks adjust their loan rate markup in response to macroeconomic shocks?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Financial institutions,
Interest rates
JEL Code(s):
E,
E3,
E32,
E4,
E44,
G,
G2,
G21,
L,
L1,
L13
Monetary Policy Pass-Through with Central Bank Digital Currency
Staff Working Paper 2021-10
Janet Hua Jiang,
Yu Zhu
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy transmission
JEL Code(s):
E,
E5,
E50,
E52
Eggs in One Basket: Security and Convenience of Digital Currencies
Staff Working Paper 2021-6
Charles M. Kahn,
Francisco Rivadeneyra,
Tsz-Nga Wong
Digital currencies store balances in anonymous electronic addresses. This paper analyzes the trade-offs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58
Using Payments Data to Nowcast Macroeconomic Variables During the Onset of COVID-19
Staff Working Paper 2021-2
James Chapman,
Ajit Desai
We use retail payment data in conjunction with machine learning techniques to predict the effects of COVID-19 on the Canadian economy in near-real time. Our model yields a significant increase in macroeconomic prediction accuracy over a linear benchmark model.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Payment clearing and settlement systems
JEL Code(s):
C,
C5,
C53,
C55,
E,
E3,
E37,
E4,
E42,
E5,
E52
Losing Contact: The Impact of Contactless Payments on Cash Usage
Staff Working Paper 2020-56
Marie-Hélène Felt
Contactless payment cards are a competitive alternative to cash. Using Canadian panel data from 2010 to 2017, this study investigates whether contactless credit cards are an important contributor to the decline in the transactional use of cash.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C3,
C33,
D,
D1,
D12,
E,
E4,
E41
Strategic Uncertainty in Financial Markets: Evidence from a Consensus Pricing Service
Staff Working Paper 2020-55
Lerby Ergun,
Andreas Uthemann
We look at the informational content of consensus pricing in opaque over-the-counter markets. We show that the availability of price data informs participants mainly about other participants’ valuations, rather than about the value of a financial security.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial markets,
Market structure and pricing
JEL Code(s):
C,
C5,
C58,
D,
D5,
D53,
D8,
D83,
G,
G1,
G12,
G14
November 27, 2020
Policy-makers reacted to the COVID-19 crisis through a variety of channels. This Systemic Risk Centre conference, co-organized with the Bank of Canada, focused on how financial markets responded to these policy initiatives and asked what we have learned for future interventions.
Financial Markets’ Response to COVID-19 Policy Interventions
Content Type(s):
Conferences and workshops