November 19, 2019 Researching the Economic Impacts of Climate Change Miguel Molico The Bank of Canada has a mandate to “promote the economic and financial welfare of Canada,” primarily through the conduct of monetary policy and promotion of a safe, sound and efficient financial system. Understanding the macroeconomic and financial system impacts of climate change and the transition to a low-carbon economy is therefore a priority for the Bank. Content Type(s): Staff research, Other Research Theme(s): Financial system, Financial stability and systemic risk, Monetary policy, Monetary policy framework and transmission, Real economy and forecasting, Structural challenges, Climate change
Do Canadian Broker-Dealers Act as Agents or Principals in Bond Trading? Staff analytical note 2017-11 Daniel Hyun, Jesse Johal, Corey Garriott Technology, risk tolerance and regulation may influence dealers to reduce their trading as principals (using their own balance sheets for sales and purchases of securities) in favour of agency trading (matching client trades). Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G1, G14, G2, G20, L, L1 Research Theme(s): Financial markets and funds management, Market functioning, Market structure
November 28, 2017 Financial System Review - November 2017 This issue of the Financial System Review reflects the Bank’s judgment that the high level of household indebtedness and housing market imbalances remain the most important vulnerabilities. While these vulnerabilities are still elevated, improving economic conditions and recent changes to housing policy should support an easing of these vulnerabilities over time. A third vulnerability highlighted in the FSR concerns cyber threats and the interconnectedness of the financial system. Content Type(s): Publications, Financial Stability Report
Classical Decomposition of Markowitz Portfolio Selection Staff working paper 2020-21 Christopher Demone, Olivia Di Matteo, Barbara Collignon In this study, we enhance Markowitz portfolio selection with graph theory for the analysis of two portfolios composed of either EU or US assets. Using a threshold-based decomposition of their respective covariance matrices, we perturb the level of risk in each portfolio and build the corresponding sets of graphs. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C0, C02 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Econometric, statistical and computational methods
Unpacking Moving: A Quantitative Spatial Equilibrium Model with Wealth Staff working paper 2023-34 Elisa Giannone, Qi Li, Nuno Paixão, Xinle Pang We propose a model to understand low observed migration rates by considering the interaction between location and wealth decisions. We look at different policies and find that temporary moving vouchers only slightly increase welfare, while lower housing regulations can decrease the welfare gap by lowering house prices nationwide. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G5, G51, R, R1, R12, R13, R2, R3, R31, R5, R52 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
February 7, 2014 Flexible Inflation Targeting and “Good” and “Bad” Disinflation Remarks Tiff Macklem John Molson School of Business Concordia University Montréal, Quebec Senior Deputy Governor Tiff Macklem discusses flexible inflation targeting and “good” and “bad” disinflation. Content Type(s): Press, Speeches and appearances, Remarks
An Alternative Estimate of Canadian Potential Output: The Multivariate State-Space Framework Staff discussion paper 2018-14 Lise Pichette, Maria Bernier, Marie-Noëlle Robitaille In this paper, we extend the state-space methodology proposed by Blagrave et al. (2015) and decompose Canadian potential output into trend labour productivity and trend labour input. As in Blagrave et al. (2015), we include output growth and inflation expectations from consensus forecasts to help refine our estimates. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, E, E0, E5 Research Theme(s): Models and tools, Economic models, Monetary policy, Real economy and forecasting
April 18, 2017 Blame It on the Machines? Remarks Carolyn A. Wilkins Toronto Region Board of Trade Toronto, Ontario Senior Deputy Governor Carolyn A. Wilkins discusses how automation could affect productivity and the Bank’s monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial stability, Fintech, Monetary policy, Economy/Economic growth, Inflation targeting framework
May 21, 2013 Canada Works Remarks Mark Carney Chambre de commerce du Montréal métropolitain (CCMM)/Board of Trade of Metropolitan Montreal Montréal, Quebec Bank of Canada Governor Mark Carney discusses the “cornerstones of Canada’s prosperity.” Content Type(s): Press, Speeches and appearances, Remarks
Crowdfunding and Risk Staff working paper 2023-28 David Cimon Crowdfunding may enable unique products to reach the consumer market. I model a crowdfunding technology that publicly screens consumer demand early in the production process. In this model, entrepreneurs like crowdfunding for risky projects where demand is uncertain, but not for large, safe projects or for projects where production costs are uncertain. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G2, G21, G24, G3, G32 Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit, Money and payments, Digital assets and fintech