Technology Adoption in Input-Output Networks Staff working paper 2019-51 Xintong Han, Lei Xu We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C61, L, L2, L23, L8, L86, O, O1, O14, O3, O33 Research Theme(s): Models and tools, Economic models, Structural challenges, Digitalization and productivity
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 JEL Code(s): D, D8, D83, O, O3, O33 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models, Money and payments, Digital assets and fintech
June 17, 2019 Flexible Exchange Rates, Commodity Prices and Price Stability Remarks Lawrence L. Schembri Economics Society of Northern Alberta (ESNA) Edmonton, Alberta Deputy Governor Lawrence Schembri speaks before the Economics Society of Northern Alberta (ESNA). Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms Staff working paper 2024-44 Janet Hua Jiang, Rupal Kamdar, Kelin Lu, Daniela Puzzello We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D15, D8, D84, E, E2, E5, E52, E7 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting
May 13, 2014 The Art and Science of Forecasting the Real Price of Oil Bank of Canada Review - Spring 2014 Christiane Baumeister Forecasts of the price of crude oil play a significant role in the conduct of monetary policy, especially for commodity producers such as Canada. This article presents a range of recently developed forecasting models that, when pooled together, can generate, on average, more accurate forecasts of the price of oil than the oil futures curve. It also illustrates how policy-makers can evaluate the risks associated with the baseline oil price forecast and how they can determine the causes of past oil price fluctuations. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): C, C5, C53, E, E3, E32, Q, Q4, Q43
CBDC in the Market for Payments at the Point of Sale: Equilibrium Impact and Incumbent Responses Staff working paper 2024-52 Walter Engert, Oleksandr Shcherbakov, André Stenzel We simulate introducing a central bank digital currency (CBDC) and consider consumer adoption, merchant acceptance and usage at the point of sale. Modest adoption frictions significantly inhibit CBDC market penetration along all three dimensions. Incumbent responses to restore pre-CBDC market shares are moderate to small and further reduce the impact of a CBDC. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C51, D, D1, D12, E, E4, E42, L, L1, L14, L5, L52 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Retail payments
Fiscal Spillovers: The Case of US Corporate and Personal Income Taxes Staff working paper 2021-41 Madeline Hanson, Daniela Hauser, Romanos Priftis How do changes to personal and corporate income tax rates in the United States affect its trading partners? Spillover effects from cuts in the two taxes differ. They are generally small and negative for corporate taxes, but sizable and positive for personal income taxes. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, E6, E62, F, F4, F44, H, H2, H20 Research Theme(s): Financial system, Financial stability and systemic risk, Monetary policy, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness
Changes in Monetary Regimes and the Identification of Monetary Policy Shocks: Narrative Evidence from Canada Staff working paper 2017-39 Julien Champagne, Rodrigo Sekkel We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E31, E32, E4, E43, E5, E52, E58 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation, Real economy and forecasting
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 JEL Code(s): E, E5, E50, E58 Research Theme(s): Financial system, Financial stability and systemic risk, Monetary policy, Monetary policy framework and transmission, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
September 15, 2008 The Bank of Canada's Senior Loan Officer Survey Bank of Canada Review - Autumn 2008 Umar Faruqui, Paul Gilbert, Wendy Kei The Bank of Canada maintains regular contact with financial institutions as part of the information-gathering process that feeds into the larger set of information used to arrive at its monetary policy decision. Since 1999, the Bank has been conducting a quarterly survey of the business-lending practices of major Canadian financial institutions. Analysis of the information collected shows that it is correlated with future growth in both credit and business investment. This article focuses on how the survey is conducted and describes the construction of the summary statistics, highlighting the key statistical relationships in the historical survey data. Content Type(s): Publications, Bank of Canada Review articles