Productive Misallocation and International Transmission of Credit Shocks Staff Working Paper 2015-19 Yuko Imura, Julia Thomas We develop an asymmetric, two-country equilibrium business cycle model to study the role of international trade in transmitting and propagating the real effects of global financial shocks. Our model predicts that a recession in a large economy considerably alters a recession in its smaller trade partner, with distinct investment dynamics driving the transmission. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Financial markets, Financial stability, International topics JEL Code(s): E, E2, E22, E3, E32, E4, E44, F, F4, F41, F44
Government and Private E-Money-Like Systems: Federal Reserve Notes and National Bank Notes Staff Working Paper 2015-18 Warren E. Weber The period from 1914 to 1935 in the United States is unique in that it was the only time that both privately-issued bank notes (national bank notes) and central bank-issued bank notes (Federal Reserve notes) were simultaneously in circulation. Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Digital currencies and fintech, Financial services JEL Code(s): E, E4, E41, E42, E5, E58
June 12, 2015 Weekly Financial Statistics - 12 June 2015 Content Type(s): Publications, Historical: Weekly Financial Statistics
June 12, 2015 Proposed Criteria and Risk-Management Standards for Prominent Payment Systems In December 2014, the Payment Clearing and Settlement Act was amended to give the Bank of Canada responsibility for identifying and overseeing payments systems that have the potential to pose payments system risk (these will be referred to as prominent payment systems). Content Type(s): Press, Market notices
June 11, 2015 Release of the Financial System Review Opening statement Stephen S. Poloz Ottawa, Ontario Press conference following the release of the Financial System Review. Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Housing, Regional economic developments, Sectoral balance sheet
June 11, 2015 Bank of Canada says risk to financial stability is slightly higher, but system is more resilient Media Relations Ottawa, Ontario The overall risk to financial stability in Canada has risen in the face of lower oil prices, but the resilience of the system continues to improve, the Bank of Canada said today as it released its biannualFinancial System Review (FSR). The FSR is intended to raise awareness of the key vulnerabilities, possible triggers and risks […] Content Type(s): Press, Press releases
June 11, 2015 Assessing Vulnerabilities in the Canadian Financial System Financial System Review - June 2015 Ian Christensen, Gitanjali Kumar, Césaire Meh, Lorie Zorn The authors present the four common cyclical vulnerabilities that appear in financial systems, providing examples of qualitative and quantitative indicators used to monitor these vulnerabilities across different sectors. They also discuss other inputs to the vulnerability assessment and to the internal process used at the Bank of Canada for identifying, evaluating and communicating vulnerabilities and risks, and highlight some of the key challenges in assessing financial system vulnerabilities and risks. Content Type(s): Publications, Financial System Review articles Topic(s): Financial stability JEL Code(s): G, G0, G01, G1, G10, G2, G20