A Microfounded Design of Interconnectedness-Based Macroprudential Policy Staff working paper 2016-6 Jose Fique To address the challenges posed by global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision recommended an “additional loss absorbency requirement” for these institutions. Along these lines, I develop a microfounded design of capital surcharges that target the interconnectedness component of systemic risk. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D82, D85, G, G2, G21, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Models and tools, Economic models
The Financial Origins of Non-fundamental Risk Staff working paper 2022-4 Sushant Acharya, Keshav Dogra, Sanjay Singh We explore the idea that the financial sector can be a source of non-fundamental risk to the rest of the economy. We also consider whether policy can be used to reduce this risk—either by increasing the supply of publicly backed safe assets or by reducing the demand for safe assets. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D5, D52, D8, D84, E, E6, E62, G, G1, G10, G12 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Household and business credit, Monetary policy, Monetary policy tools and implementation
The Impact of Bankruptcy Reform on Insolvency Choice and Consumer Credit Staff working paper 2016-26 Jason Allen, Kiana Basiri We examine the impact of the 2009 amendments to the Canadian Bankruptcy and Insolvency Act on insolvency decisions. Rule changes steered debtors out of division I proposals and into the more cost-effective division II proposals. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D14, G, G2, K, K3, K35 Research Theme(s): Financial system, Financial system regulation and oversight, Household and business credit
Can the Canadian International Investment Position Stabilize a Slowing Economy? Staff analytical note 2017-14 Maxime Leboeuf, Chen Fan In this note, we find that valuation effects can act as an important stabilizer, strengthening Canada’s net external wealth when its economic outlook worsens relative to that of other countries. Content Type(s): Staff research, Staff analytical notes JEL Code(s): F, F2, F21, F3, F32 Research Theme(s): Financial system, Financial stability and systemic risk, Structural challenges, International trade, finance and competitiveness
An Improved Equation for Predicting Canadian Non-Commodity Exports Staff discussion paper 2017-1 Patrick Alexander, Jean-Philippe Cayen, Alex Proulx We estimate two new equations for Canadian non-commodity exports (NCX) that incorporate three important changes relative to the current equation used at the Bank of Canada. Content Type(s): Staff research, Staff discussion papers JEL Code(s): F, F1, F10, F14, F17 Research Theme(s): Models and tools, Economic models, Monetary policy, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness
The contribution of firm profits to the recent rise in inflation Staff analytical note 2023-12 Panagiotis Bouras, Christian Bustamante, Xing Guo, Jacob Short We measure the contribution to inflation from the growth in markups of Canadian firms. The dynamics of inflation and markups suggest that changes in markups could account for less than one-tenth of inflation in 2021. Further, they suggest that peak inflation was driven primarily by changes in the costs of firms. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D2, D22, D4, E, E3, E31, L, L1, L11 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Inflation dynamics and pressures
Cyclicality of Schooling: New Evidence from Unobserved Components Models Staff working paper 2020-38 Barbara Sadaba, Sunčica Vujič, Sofia Maier What is the time-varying impact of economic cycles on decisions to invest in human capital? Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, C32, E, E3, I, I2, J, J2 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting
CBDC: Banking and Anonymity Staff working paper 2024-9 Yuteng Cheng, Ryuichiro Izumi We examine the optimal amount of user anonymity in a central bank digital currency in the context of bank lending. Anonymity, defined as the lender’s inability to discern an entrepreneur’s actions that enable fund diversion, influences the choice of payment instrument due to its impact on a bank’s lending decisions. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E42, E5, E58, G, G2, G28 Research Theme(s): Financial system, Financial institutions and intermediation, Monetary policy, Monetary policy tools and implementation, Money and payments, Digital assets and fintech, Retail payments
October 1, 2013 Global Growth and the Prospects for Canada’s Exports Remarks Tiff Macklem Economic Club of Canada Toronto, Ontario Senior Deputy Governor Tiff Macklem discusses global growth and the prospects for Canada’s exports. Content Type(s): Press, Speeches and appearances, Remarks
Allocative Efficiency and the Productivity Slowdown Staff working paper 2021-1 Lin Shao, Rongsheng Tang In our analysis of the US productivity slowdown in the 1970s and 2000s, we find that a significant portion of this deceleration can be attributed to a lack of improvement in allocative efficiency across sectors. Our analysis further identifies increased sector-level volatility as a major contributor to this lack of improvement in allocative efficiency. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E23, O, O4, O47 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting, Structural challenges, Digitalization and productivity