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2143 Results

June 22, 2011

Financial System Review - June 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.

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.

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.

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.

Examining the Impact of Home Purchase Restrictions on China’s Housing Market

Staff working paper 2021-18 Zhentong Lu, Sisi Zhang, Jian Hong
How do “cooling measures” in the housing market—policies aimed to stabilize prices—affect the market? We use a structural model of housing demand and price competition among developers to evaluate China’s home purchase restriction policies implemented in 2010–11.

Expropriation Risk and FDI in Developing Countries: Does Return of Capital Dominate Return on Capital?

Staff working paper 2017-9 M. Akhtaruzzaman, Nathan Berg, Christopher Hajzler
Previously reported effects of institutional quality and political risks on foreign direct investment (FDI) are mixed and, therefore, difficult to interpret. We present empirical evidence suggesting a relatively clear, statistically robust, and intuitive characterization.

Risk Scenarios and Macroeconomic Forecasts

Staff working paper 2025-28 Kevin Moran, Dalibor Stevanovic, Stéphane Surprenant
We produce forecasts for four risk scenarios to consider their usefulness for monitoring the Canadian economy. We find a high-oil-price scenario benefits the economy, a US recession induces a slowdown, a tight labor market leads to price increases, and a restrictive monetary policy scenario increases the unemployment rate while lowering the inflation rate.

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.
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