Foreign Exchange Interventions: The Long and the Short of It Staff working paper 2022-25 Patrick Alexander, Sami Alpanda, Serdar Kabaca This paper studies the effects of foreign exchange (FX) interventions in a two-region model where governments issue both short- and long-term bonds. We find that the term premium channel dominates the trade balance channel in our calibrated model. As a result, the conventional beggar-thy-neighbor effects of interventions are overturned. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F3, F31, F33, F4, F41 Research Theme(s): Financial markets and funds management, Funds management, International markets and currencies, Models and tools, Economic models
(Optimal) Monetary Policy with and without Debt Staff working paper 2021-5 Boris Chafwehé, Rigas Oikonomou, Romanos Priftis, Lukas Vogel How should policy be designed at high debt levels, when fiscal authorities have little room to adjust taxes? Assigning the monetary authority a role in achieving debt sustainability makes it less effective in stabilizing inflation and output. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C11, E, E3, E31, E5, E52, E58, E6, E62 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation, Real economy and forecasting
Benchmarks for assessing labour market health: 2023 update Staff analytical note 2023-7 Erik Ens, Kurt See, Corinne Luu We enhance benchmarks for assessing strength in the Canadian labour market. We find the labour market remains tight despite recent strong increases in labour supply, including among prime-working-age women. We also assess the anticipated easing in labour conditions in a context of high population growth. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, E24, J, J2, J21, J6 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
December 11, 2012 Guidance Remarks Mark Carney CFA Society Toronto Toronto, Ontario Bank of Canada Governor Mark Carney speaks about central bank policy guidance. Content Type(s): Press, Speeches and appearances, Remarks
December 14, 1999 Trends in Canada's Merchandise Trade Bank of Canada Review - Winter 1999–2000 Richard Dion The author examines aspects of Canada's trade performance in light of the major trends seen in world trade over the past several decades. Canada has become more integrated with the world economy, and this openness is evident from its greater export orientation, its heavier reliance on imported inputs, and more exposure to foreign competition in its domestic markets. The author analyzes the composition of Canadian trade and the trend towards increasing two-way trade in similar products. He also looks at the increasing integration of trade within regions, which for Canada has meant a greater concentration of exports with the United States. Content Type(s): Publications, Bank of Canada Review articles
Corporate Debt Composition and Business Cycles Staff working paper 2019-5 Jelena Zivanovic Based on empirical evidence, I propose a dynamic stochastic general equilibrium model with two financial sectors to analyze the role of corporate debt composition (bank versus bond financing) in the transmission of economic shocks. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, E4, E44 Research Theme(s): Financial system, Household and business credit, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Real economy and forecasting
Interconnected Banks and Systemically Important Exposures Staff working paper 2019-44 Alan Roncoroni, Stefano Battiston, Marco D’Errico, Grzegorz Halaj, Christoffer Kok How do banks' interconnections in the euro area contribute to the vulnerability of the banking system? We study both the direct interconnections (banks lend to each other) and the indirect interconnections (banks are exposed to similar sectors of the economy). These complex linkages make the banking system more vulnerable to contagion risks. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C63, G, G1, G15, G2, G21 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
April 2, 2012 Exporting in a Post-Crisis World Remarks Mark Carney Greater Kitchener Waterloo Chamber of Commerce Waterloo, Ontario Governor Mark Carney discusses why Canada’s exports are lagging and what can be done to respond to the underlying challenges. Content Type(s): Press, Speeches and appearances, Remarks
Climate Change and Socio-economic inequality in the US Staff working paper 2026-16 Barbara Sadaba, Tatjana Dahlhaus This paper examines how climate change affects income inequality across US states. Using a new climate-inequality VAR and a century of daily temperature data, it shows that shifts across the full temperature distribution—not just average warming—have diverse effects on within-state inequality. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C11, C3, C32, D, D6, D63, Q, Q5, Q54 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Structural challenges, Climate change
October 5, 2005 The Exchange Rate and Canadian Inflation Targeting Bank of Canada Review - Autumn 2005 Christopher Ragan An essential element of the Bank of Canada's inflation-targeting framework is a floating exchange rate that is free to adjust in response to shocks that affect the Canadian and world economies. This floating rate plays an important role in the transmission mechanism for monetary policy. A practical question is how the Bank of Canada incorporates currency movements into the monetary policy decision-making process. Only after determining the cause and persistence of exchange rate change, and its likely net effect on aggregate demand, can the Bank decide on the appropriate policy response to keep inflation low, stable, and predictable. Ragan reviews the need to target inflation and the transmission mechanism for monetary policy, including the role of the exchange rate, before describing two types of exchange rate movements and their implications for monetary policy. Content Type(s): Publications, Bank of Canada Review articles