May 18, 2015 Bank of Canada to issue a commemorative bank note marking the historic reign of Queen Elizabeth II As announced by the Prime Minister’s Office, the Bank of Canada will contribute to the Government of Canada’s plans to commemorate the historic reign of Her Majesty Queen Elizabeth II by issuing a commemorative bank note in 2015. Content Type(s): Press, Announcements Research Topic(s): Bank notes
May 14, 2015 Inflation Dynamics in the Post-Crisis Period Bank of Canada Review - Spring 2015 Christian Friedrich, Marc-André Gosselin Inflation rates in advanced economies experienced two consecutive puzzles during the period following the global financial crisis—unexpectedly high inflation from the end of 2009 to 2011 and unexpectedly low inflation from 2012 to the middle of 2014. We investigate these developments in two ways. First, we show that accounting for inflation expectations by households explains a significant share of the inflation puzzles at the international level. Second, we find that, for Canada, elevated competition in the retail sector is also important for understanding inflation dynamics in the post-crisis period. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Inflation and prices, International topics, Regional economic developments JEL Code(s): E, E3, E31, E5, F, F4, F41
Debt Overhang and Deleveraging in the US Household Sector: Gauging the Impact on Consumption Staff Working Paper 2015-47 Bruno Albuquerque, Georgi Krustev Using a novel dataset for the US states, this paper examines whether household debt and the protracted debt deleveraging help explain the dismal performance of US consumption since 2007, in the aftermath of the housing bubble. Content Type(s): Staff research, Staff working papers Research Topic(s): Credit and credit aggregates, Econometric and statistical methods, International topics JEL Code(s): C, C1, C13, C2, C23, C5, C52, D, D1, D12, H, H3, H31
December 23, 2015 Banking and Financial Statistics - December 2015 Content Type(s): Publications, Historical: Banking and Financial Statistics
December 18, 2015 Weekly Financial Statistics - 18 December 2015 Content Type(s): Publications, Historical: Weekly Financial Statistics
December 15, 2015 Bank of Canada says housing vulnerabilities have edged higher, but financial system remains resilient Media Relations Ottawa, Ontario Vulnerabilities in the housing sector have edged higher, the Bank of Canada said today in its Financial System Review (FSR), while the overall level of risk to Canada’s financial system has remained roughly unchanged since June. The Bank continues to identify two key vulnerabilities related to the Canadian household sector: the elevated level of household […] Content Type(s): Press, Press releases
December 15, 2015 Indebted Households and Potential Vulnerabilities for the Canadian Financial System: A Microdata Analysis Financial System Review - December 2015 Gino Cateau, Tom Roberts, Jie Zhou Over the past decade, an increasing proportion of households in Canada have become highly indebted relative to their income. These highly indebted households now hold one-fifth of total Canadian household debt.Simulations suggest that this greater degree of household indebtedness could exacerbate the impact of shocks to income and interest rates relative to the pre-crisis period. However, an assessment of the vulnerability of the Canadian financial system should, among other factors, account for the ability of Canadian financial institutions to withstand losses from the household sector. Content Type(s): Publications, Financial System Review articles Research Topic(s): Credit and credit aggregates, Financial stability, Housing, Recent economic and financial developments JEL Code(s): D, D1, D14, E, E5, E51
December 15, 2015 Residential Mortgage Securitization in Canada: A Review Financial System Review - December 2015 Adi Mordel Residential mortgage securitization plays an important role in the Canadian system of housing finance, especially given the rising share of government-supported (i.e., public) securitization over the past 15 years. Mordel and Stephens analyze the evolution of two types of mortgage securitization in Canada— private and public — focusing in particular on the underlying public policy and economic benefits of the latter. They review the potential implications of the extent of public securitization and conclude with a discussion of policies that could be considered to reinvigorate private securitization in Canada. Content Type(s): Publications, Financial System Review articles Research Topic(s): Financial institutions, Financial stability, Financial system regulation and policies, Housing JEL Code(s): G, G2, G28
December 15, 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 Research Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Housing, Regional economic developments, Sectoral balance sheet
Tractable Term Structure Models Staff Working Paper 2015-46 Bruno Feunou, Jean-Sébastien Fontaine, Anh Le, Christian Lundblad We introduce a new framework that facilitates term structure modeling with both positive interest rates and flexible time-series dynamics but that is also tractable, meaning amenable to quick and robust estimation. Content Type(s): Staff research, Staff working papers Research Topic(s): Asset pricing, Interest rates, International financial markets, International topics, Monetary policy and uncertainty, Monetary policy transmission JEL Code(s): G, G1, G12