Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1320
result(s)
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
Detecting Scapegoat Effects in the Relationship Between Exchange Rates and Macroeconomic Fundamentals
Staff Working Paper 2017-22
Lorenzo Pozzi,
Barbara Sadaba
This paper presents a new testing method for the scapegoat model of exchange rates that aims to tighten the link between the theory on scapegoats and its empirical implementation. This new testing method consists of a number of steps.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rates,
International financial markets
JEL Code(s):
C,
C3,
C32,
F,
F3,
F31,
G,
G1,
G15
Should Central Banks Worry About Nonlinearities of their Large-Scale Macroeconomic Models?
Staff Working Paper 2017-21
Vadym Lepetyuk,
Lilia Maliar,
Serguei Maliar
How wrong could policymakers be when using linearized solutions to their macroeconomic models instead of nonlinear global solutions?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Economic models
JEL Code(s):
C,
C6,
C61,
C63,
C68,
E,
E3,
E31,
E5,
E52
Volatility Risk and Economic Welfare
Staff Working Paper 2017-20
Shaofeng Xu
This paper examines the effects of time-varying volatility on welfare. I construct a tractable endogenous growth model with recursive preferences, stochastic volatility, and capital
adjustment costs.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models
JEL Code(s):
E,
E2,
E3
Assessing the Predictive Ability of Sovereign Default Risk on Exchange Rate Returns
Staff Working Paper 2017-19
Claudia Foroni,
Francesco Ravazzolo,
Barbara Sadaba
Increased sovereign credit risk is often associated with sharp currency movements. Therefore, expectations of the probability of a sovereign default event can convey important information regarding future movements of exchange rates.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rates,
International financial markets
JEL Code(s):
C,
C2,
C22,
C5,
C52,
C53,
F,
F3,
F31
The Welfare Effects of Protection: A General Equilibrium Analysis of Canada’s National Policy
Staff Working Paper 2017-18
Patrick Alexander,
Ian Keay
In this paper, we study the impact of Canada’s adoption of protectionist trade policy in 1879 on Canadian welfare. Under the National Policy the Canadian average weighted tariff increased from 14% to 21%. The conventional view is that this was a distortionary policy that negatively affected Canadian welfare.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
International topics,
Trade integration
JEL Code(s):
F,
F1,
F13,
F14,
F4,
F42,
F6,
F60,
N,
N7,
N71
Vertical Specialization and Gains from Trade
Staff Working Paper 2017-17
Patrick Alexander
Multi-stage production is widely recognized as an important feature of the modern global economy. This feature has been incorporated into many state-of-the-art quantitative trade models, and has been shown to deliver significant additional gains from international trade.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
International topics,
Trade integration
JEL Code(s):
F,
F1,
F11,
F14,
F6,
F60