Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1306
result(s)
Downward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”
Staff Working Paper 2017-31
Joel Wagner
The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It is traditionally assumed that positive inflation could “grease the wheels” of the labour market by putting downward pressure on real wages, easing labour market adjustments during a recession.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation targets,
Labour markets
JEL Code(s):
E,
E2,
E24,
E5,
E52
Retrieving Implied Financial Networks from Bank Balance-Sheet and Market Data
Staff Working Paper 2017-30
Jose Fique
In complex and interconnected banking systems, counterparty risk does not depend only on the risk of the immediate counterparty but also on the risk of others in the network of exposures.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
C,
C6,
C63,
D,
D8,
D85,
G,
G2,
G21
Information Contagion and Systemic Risk
Staff Working Paper 2017-29
Co-Pierre Georg,
Toni Ahnert
We examine the effect of ex-post information contagion on the ex-ante level of systemic risk defined as the probability of joint bank default.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
G,
G0,
G01,
G1,
G11,
G2,
G21
Adoption of a New Payment Method: Theory and Experimental Evidence
Staff Working Paper 2017-28
Jasmina Arifovic,
John Duffy,
Janet Hua Jiang
We model the introduction of a new payment method, e.g., e-money, that competes with an existing payment method, e.g., cash. The new payment method involves relatively lower per-transaction costs for both buyers and sellers, but sellers must pay a fixed fee to accept the new payment method.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
C,
C3,
C35,
C8,
C83,
C9,
C92,
E,
E4,
E41
Firm Heterogeneity, Technological Adoption, and Urbanization: Theory and Measurement
Staff Working Paper 2017-27
Alex Chernoff
This paper develops a model of firm heterogeneity, technological adoption, and urbanization. In the model, welfare is measured by household real income, and urbanization is measured by population density. I use the model to derive statistics that measure the effect of a new technology on productivity, welfare, and urbanization.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Productivity,
Regional economic developments
JEL Code(s):
N,
N6,
N61,
O,
O1,
O14,
R,
R1,
R13
Quantitative Easing and Long‐Term Yields in Small Open Economies
Staff Working Paper 2017-26
Antonio Diez de los Rios,
Maral Shamloo
We compare the Federal Reserve’s asset purchase programs with those implemented by the Bank of England and the Swedish Riksbank, and the Swiss National Bank’s reserve expansion program.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Interest rates,
Monetary policy
JEL Code(s):
E,
E4,
E43,
E5,
E52,
E58,
G,
G1,
G12
Monetary Policy Implementation in a Negative Rate Environment
Staff Working Paper 2017-25
Michael Boutros,
Jonathan Witmer
Monetary policy implementation could, in theory, be constrained by deeply negative rates since overnight market participants may have an incentive to invest in cash rather than lend to other participants.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Interest rates,
Monetary policy framework,
Monetary policy implementation
JEL Code(s):
E,
E4,
E40,
E42,
E43,
G,
G0
Understanding Monetary Policy and its Effects: Evidence from Canadian Firms Using the Business Outlook Survey
Staff Working Paper 2017-24
Matthieu Verstraete,
Lena Suchanek
This paper shows (i) that business sentiment, as captured by survey data, matters for monetary policy decisions in Canada, and (ii) how business perspectives are affected by monetary policy shocks. Measures of business sentiment (soft data) are shown to have systematic explanatory power for monetary policy decisions over and above typical Taylor rule variables.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Interest rates,
Monetary policy transmission
JEL Code(s):
D,
D2,
D22,
E,
E4,
E44,
E5,
E52
Understanding the Cross‐Country Effects of US Technology Shocks
Staff Working Paper 2017-23
Thuy Lan Nguyen,
Wataru Miyamoto
Business cycles are substantially correlated across countries. Yet most existing models are not able to generate substantial transmission through international trade. We show that the nature of such transmission depends fundamentally on the features determining the responsiveness of labor supply and labor demand to international relative prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E3,
E30,
F,
F4,
F41,
F44,
F6,
F62