Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1302
result(s)
News-Driven International Credit Cycles
Staff Working Paper 2021-66
Galip Kemal Ozhan
This paper examines the implications of positive news about future asset values that turn out to be incorrect at a later date in an open economy model with banking. The model captures the patterns of bank credit and current account dynamics in Spain between 2000 and 2010. The model finds that the use of unconventional policies leads to a milder bust.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Economic models,
Financial stability,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
E,
E4,
E44,
F,
F3,
F32,
F4,
F41,
G,
G1,
G15,
G2,
G21
Predicting the Demand for Central Bank Digital Currency: A Structural Analysis with Survey Data
Staff Working Paper 2021-65
Jiaqi Li
How much of a CBDC would Canadian households want to hold, and what design features of a CBDC would they care about?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E5,
E50,
E58
Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System
Staff Working Paper 2021-64
Neville Arjani,
Fuchun Li,
Zhentong Lu
Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C3,
E,
E4,
E42,
G,
G1,
G2,
G28
Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design
Staff Working Paper 2021-63
Jonathan Chiu,
Mohammad Davoodalhosseini
Should a CBDC be more like cash or bank deposits? An interest-bearing, cash-like CBDC not only makes payments more efficient but also increases total demand. This has positive effects on other transactions, inducing more deposit taking and lending and, thus, bank intermediation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E50,
E58
Monetary Policy Spillover to Small Open Economies: Is the Transmission Different under Low Interest Rates?
Staff Working Paper 2021-62
Jin Cao,
Valeriya Dinger,
Tomás Gómez,
Zuzana Gric,
Martin Hodula,
Alejandro Jara,
Ragnar Juelsrud,
Karolis Liaudinskas,
Simona Malovaná,
Yaz Terajima
Does the transmission of monetary policy change when interest rates are low or negative? We shed light on this question by analyzing the international bank lending channels of monetary policy using regulatory data on banks from four small open economies: Canada, Chile, the Czech Republic and Norway.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
International topics,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
E5,
E52,
E58,
F,
F3,
F34,
F4,
F42,
G,
G2,
G21,
G28
The Countercyclical Capital Buffer and International Bank Lending: Evidence from Canada
Staff Working Paper 2021-61
David Xiao Chen,
Christian Friedrich
We examine the impact of the CCyB on foreign lending activities of Canadian banks. We show that the announcement of a tightening in another country’s CCyB leads to a decrease in the growth rate of cross-border lending between Canadian banks and borrowers in that other country.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit risk management,
Financial institutions,
Financial stability,
Financial system regulation and policies,
International topics
JEL Code(s):
E,
E3,
E32,
F,
F2,
F21,
F3,
F32,
G,
G2,
G21,
G28
Bitcoin Adoption and Beliefs in Canada
Staff Working Paper 2021-60
Daniela Balutel,
Christopher Henry,
Jorge Vásquez,
Marcel Voia
Using an economic model as well as survey data from the Bank of Canada, we study what factors influence the adoption of Bitcoin in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Econometric and statistical methods,
Economic models
JEL Code(s):
D,
D8,
D83,
O,
O3,
O33
Democratic Political Economy of Financial Regulation
Staff Working Paper 2021-59
Igor Livshits,
Youngmin Park
We offer a theory of how inefficiently lax financial regulation could arise in a democratic society.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies,
Housing,
Interest rates
JEL Code(s):
E,
E4,
E43,
E44,
G,
G0,
G01,
G2,
G21,
G28,
P,
P4,
P48
Discount Rates, Debt Maturity, and the Fiscal Theory
Staff Working Paper 2021-58
Alexandre Corhay,
Thilo Kind,
Howard Kung,
Gonzalo Morales
Do bond risk premiums influence the effects of debt maturity operations? Using a model with realistic bond risk premiums, we show that maturity operations have sizable effects on expected inflation and output when the central bank passively responds to inflation and the fiscal authority weakly responds to the debt level.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Interest rates,
Monetary policy
JEL Code(s):
E,
E4,
E43,
E44,
E6,
E63,
G,
G1,
G12