Public and Private Money Creation for Distributed Ledgers: Stablecoins, Tokenized Deposits, or Central Bank Digital Currencies? Staff working paper 2024-35 Jonathan Chiu, Cyril Monnet This paper explores the implications of introducing digital public and private monies (e.g. tokenized central bank digital currency [CBDC] or tokenized deposits) for stablecoins and illicit crypto transactions. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E5, E50, E58 Research Theme(s): Monetary policy, Monetary policy tools and implementation, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Small‐Sample Tests for Stock Return Predictability with Possibly Non‐Stationary Regressors and GARCH‐Type Effects Staff working paper 2017-10 Sermin Gungor, Richard Luger We develop a simulation-based procedure to test for stock return predictability with multiple regressors. The process governing the regressors is left completely free and the test procedure remains valid in small samples even in the presence of non-normalities and GARCH-type effects in the stock returns. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C12, C3, C32, G, G1, G14 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Econometric, statistical and computational methods
Resolving Failed Banks: Uncertainty, Multiple Bidding & Auction Design Staff working paper 2019-30 Jason Allen, Robert Clark, Brent Hickman, Eric Richert Bank resolution is costly. In the United States, the Federal Deposit Insurance Corporation (FDIC) typically resolves failing banks by auction. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C57, D, D4, D44, G, G2, G21 Research Theme(s): Financial markets and funds management, Market structure, Financial system, Financial stability and systemic risk, Financial system regulation and oversight
The potential effect of a central bank digital currency on deposit funding in Canada Staff analytical note 2020-15 Alejandro García, Bena Lands, Xuezhi Liu, Joshua Slive A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E41, E44, E5, G, G1, G10, G17, G2, G21, G3, G32, O Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Money and payments, Digital assets and fintech
Measuring household financial stress in Canada using consumer surveys Staff analytical note 2024-5 Nicolas Bédard, Patrick Sabourin We use data from the Canadian Survey of Consumer Expectations to understand how households are coping with high inflation and high interest rates. We build a subjective measure of financial stress and find that the level of stress is at a historical high but remains manageable for most households. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D1, D14, G, G5, H, H3 Research Theme(s): Financial system, Household and business credit, Monetary policy, Real economy and forecasting
October 6, 2016 Economic Trends and Monetary Policy Remarks Carolyn A. Wilkins Université du Québec à Trois-Rivières Trois-Rivières, Quebec Senior Deputy Governor Carolyn Wilkins talks about the major trends of the Canadian economy and how they affect monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
Centralizing Over-the-Counter Markets? Staff working paper 2021-39 Jason Allen, Milena Wittwer Would a shift in trading in fixed-income markets—from over the counter (bilateral trading) to a centralized electronic platform—improve welfare? We use trade-level data on the secondary market for Government of Canada debt to answer this question. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D4, D40, D47, G, G1, G10, G2, G20, L, L1, L10 Research Theme(s): Financial markets and funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation
Artificial Intelligence and Financial Tail Risks Staff working paper 2026-40 Javier Ojea Ferreiro, Andrea Ugolini, Juan C. Reboredo This paper examines how market-perceived AI exposure is associated with extreme financial-sector gains and losses across five markets, using Expected Shortfall and skewness decompositions to distinguish AI-sector, macroeconomic, systemic and financial scenarios. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C58, G, G0, G01, G2, G21, G3, G32 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Models and tools, Econometric, statistical and computational methods, Structural challenges, Digitalization and productivity
Labor Market Shocks and Monetary Policy Staff working paper 2023-52 Serdar Birinci, Fatih Karahan, Yusuf Mercan, Kurt See We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer transitions for inflation. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E1, E12, E2, E24, E5, E52, J, J3, J31, J6, J62, J64 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting
More Money for Some: The Redistributive Effects of Open Market Operations Staff working paper 2021-46 Christian Bustamante I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E21, E3, E32, E5, E52 Research Theme(s): Financial system, Household and business credit, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation