Crisis facilities as a source of public information Staff analytical note 2025-7 Lerby Ergun During the COVID-19 financial market crisis, central banks introduced programs to support liquidity in important core funding markets. As well as acting as a backstop to market prices, these programs produce useful trading data on prevailing market conditions. When summary information from this data is shared publicly, it can help market participants understand current conditions and aid the recovery of market functioning. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C5, C58, D, D5, D53, D8, D83, G, G1, G12, G14 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation
Understanding Inflation Dynamics: The Role of Government Expenditures Staff working paper 2023-30 Chang Liu, Yinxi Xie We study the impact government expenditure has on inflation. We find that changes in government expenditure account for a substantial portion of inflation variations. We also find that inflation and inflation expectations respond negatively to fiscal spending shocks, reaffirming the supply-side channel through which inflation responds to fiscal expansions. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E6, E62, E63 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures
Retail Order Flow Segmentation Staff working paper 2016-20 Corey Garriott, Adrian Walton In August 2012, the New York Stock Exchange launched the Retail Liquidity Program (RLP), a trading facility that enables participating organizations to quote dark limit orders executable only by retail traders. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G1, G14, G2, G20, L, L1, L10 Research Theme(s): Financial markets and funds management, Market functioning, Market structure
Fire Sales and Liquidity Requirements Staff working paper 2024-18 Yuteng Cheng, Roberto Robatto We study liquidity requirements in a framework with fire sales. The framework nests three common pricing mechanisms and produces the same observables. Absent risk-sharing considerations, the equilibrium is efficient with cash-in-the-market pricing; a liquidity requirement is optimal with second-best-use pricing; and a liquidity ceiling (i.e., a cap on liquid assets) is optimal with adverse selection. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G1, G12, G2, G23, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Household and business credit
June 24, 2007 Price Formation and Liquidity Provision in the Markets for European and Canadian Government Securities Financial System Review - June 2007 Chris D'Souza, Ingrid Lo, Stephen Sapp Content Type(s): Publications, Financial System Review articles
Measuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market Staff working paper 2021-40 Haofeng Jin, Zhentong Lu Salespeople are widely employed in many industries. We leverage a unique data set on retail sales from a leading Chinese cold-drink manufacturer and information on the firm’s salespeople assignment rule to measure the causal effect of salespeople on product revenue. Content Type(s): Staff research, Staff working papers JEL Code(s): L, L8, L81, M, M3, M5 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
Merchant Access to Cash: Going the Extra Kilometer? Staff analytical paper 2026-41 Angelika Welte, Stephen Wild, Patrick Fogaing kouamo In this study, we measure SMBs’ access to cash using the driving distance to financial institution (FI) branches. First, we measure the distance between SMBs and the nearest FI branch. Second, we use a sample of 651 SMBs from the 2023 Merchant Acceptance Survey to examine SMBs’ banking choices. Content Type(s): Staff research, Staff analytical paper JEL Code(s): D, D8, D83, E, E4, E41 Research Theme(s): Money and payments, Cash and bank notes, Retail payments
December 21, 2007 Financial System Review - December 2007 The financial system makes an important contribution to the welfare of all Canadians. The ability of households and firms to confidently hold and transfer financial assets is one of the fundamental building blocks of the Canadian economy. Content Type(s): Publications, Financial Stability Report
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 JEL Code(s): C, C2, C22, C5, C52, C53, F, F3, F31 Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Econometric, statistical and computational methods
Estimating Large-Dimensional Connectedness Tables: The Great Moderation Through the Lens of Sectoral Spillovers Staff working paper 2021-37 Felix Brunner, Ruben Hipp Understanding the size of sectoral links is crucial to predicting the impact of a crisis on the whole economy. We show that statistical learning techniques substantially outperform traditional estimation techniques when measuring large networks of these links. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C2, C22, C5, C52, E, E2, E23, E27 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting