SME Failures Under Large Liquidity Shocks: An Application to the COVID-19 Crisis Staff working paper 2023-32 Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova, Nicholas Sander We study the effects of financial frictions on firm exit when firms face large liquidity shocks. We develop a simple model of firm cost-minimization that introduces a financial friction that limits firms’ borrowing capacity to smooth temporary shocks to liquidity. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D2, D21, D22, E, E6, E65, H, H8, H81 Research Theme(s): Financial system, Financial stability and systemic risk, 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
Communicating Uncertainty in Monetary Policy Staff discussion paper 2017-14 Sharon Kozicki, Jill Vardy While central banks cannot provide complete foresight with respect to their future policy actions, it is in the interests of both central banks and market participants that central banks be transparent about their reaction functions and how they may evolve in response to economic developments, shocks, and risks to their outlooks. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E52, E58, E6, E61, E65 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation
Anticipating changes in bank capital buffer requirements Staff analytical note 2025-27 Josef Schroth Time-varying capital buffer requirements are a powerful tool that allow bank regulators to avoid severe financial stress without the cost of imposing very high levels of capital. However, this tool is only effective if banks understand how it is used. I present a model that banks and financial market participants can use to anticipate how time-varying capital buffer requirements change over time. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E1, E13, E3, E32, E4, E44 Research Theme(s): Financial system, Financial institutions and intermediation, Financial system regulation and oversight
December 12, 2011 Growth in the Age of Deleveraging Remarks Mark Carney Empire Club of Canada / Canadian Club of Toronto Toronto, Ontario Governor Mark Carney discusses the factors driving global deleveraging and the implications for economic growth in Canada. Content Type(s): Press, Speeches and appearances, Remarks
June 22, 2011 Financial System Review - June 2011 In this issue of the Financial System Review, the Bank of Canada’s Governing Council judges that, although the Canadian financial system is currently on a sound footing, risks to its stability remain elevated and have edged higher since December 2010. Content Type(s): Publications, Financial Stability Report
February 1, 2012 Transparency in the Canadian Fixed-Income Market: Opportunities and Constraints Financial System Review - December 2003 Tran-Minh Vu Content Type(s): Publications, Financial System Review articles
Merchant Acceptance of Cash and Credit Cards at the Point of Sale Staff analytical note 2018-1 Ben Fung, Kim Huynh, Kerry Nield, Angelika Welte Recent data show that the use of credit cards in Canada has been increasing, while the use of cash has been declining. At the same time, only two-thirds of small or medium-sized businesses accept credit cards. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C2, D, D1, E, E4, E41 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Cash and bank notes, Retail payments
Equilibrium in Two-Sided Markets for Payments: Consumer Awareness and the Welfare Cost of the Interchange Fee Staff working paper 2022-15 Kim Huynh, Gradon Nicholls, Oleksandr Shcherbakov We construct and estimate a structural two-stage model of equilibrium in a market for payments in order to quantify the network externalities and identify the main determinants of consumer and merchant decisions. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C51, D, D1, D12, E, E4, E42, L, L1, L14 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Payment and financial market infrastructures, Retail payments
A Reference Guide for the Business Outlook Survey Staff discussion paper 2020-15 David Amirault, Naveen Rai, Laurent Martin The Business Outlook Survey (BOS) has become an important part of monetary policy deliberations at the Bank of Canada and is also well known in Canadian policy and financial circles. This paper compiles more than 20 years of experience conducting the BOS and serves as a comprehensive reference manual. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C8, C83, D, D2, D22, E, E3, E32 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Real economy and forecasting