Narrative-Driven Fluctuations in Sentiment: Evidence Linking Traditional and Social Media Staff working paper 2023-23 Alistair Macaulay, Wenting Song News media present competing interpretations of what breaking news implies for the macroeconomy. Recent examples include news reporting on high inflation and yield curve inversions. Do these narratives shape macroeconomic sentiment? In this paper, we highlight the importance of narratives using evidence linking traditional media and social media. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D84, E, E3, E32, E4, E43, E44, E5, G, G1 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
Information, Prices and Buyer Entry Staff working paper 2026-4 Mei Dong, Janet Hua Jiang, Ling Sun In markets with costly buyer entry, information transparency about prices draws in buyers, increasing demand-side competition and putting upward pressure on prices. We show that this buyer entry effect may dominate seller competition as emphasized by conventional wisdom and prices and markups may rise with information transparency. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D4, D40, D8, D83, L, L1, L11 Research Theme(s): Models and tools, Economic models
On Causal Networks of Financial Firms: Structural Identification via Non-parametric Heteroskedasticity Staff working paper 2020-42 Ruben Hipp Banks’ business interactions create a network of relationships that are hidden in the correlations of bank stock returns. But for policy interventions, we need causality to understand how the network changes. Thus, this paper looks for the causal network anticipated by investors. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C3, C32, C5, C58, L, L1, L14 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Econometric, statistical and computational methods
Cyber Risk and Security Investment Staff working paper 2022-32 Toni Ahnert, Michael Brolley, David Cimon, Ryan Riordan We develop a principal-agent model of cyber-attacking with fee-paying clients who delegate security decisions to financial platforms. We derive testable implications about clients’ vulnerability to cyber attacks and about the fees charged. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D7, D78, D8, D81, G, G1, G18, G2, G21, G23 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Money and payments, Digital assets and fintech
Payment Coordination and Liquidity Efficiency in the New Canadian Wholesale Payments System Staff discussion paper 2022-3 Francisco Rivadeneyra, Nellie Zhang We study the impact of the Bank of Canada’s choice of settlement mechanism in Lynx on participant behaviors, liquidity usage, payment delays and the overall operational efficiency of the new system. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, E, E4, E42, E5, E58 Research Theme(s): Financial markets and funds management, Market functioning, Money and payments, Payment and financial market infrastructures
March 21, 2017 Getting Down to Business: Investment and the Economic Outlook Remarks Lawrence L. Schembri Greater Vancouver Board of Trade Vancouver, British Columbia Deputy Governor Lawrence Schembri discusses the factors affecting business investment and the implications for the economic outlook. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Funds management, Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
Implementing Market-Based Indicators to Monitor Vulnerabilities of Financial Institutions Staff analytical note 2016-5 Cameron MacDonald, Maarten van Oordt, Robin Scott This note introduces several market-based indicators and examines how they can further inform the Bank of Canada’s vulnerability assessment of Canadian financial institutions. Market-based indicators of leverage suggest that the solvency risk for major Canadian banks has increased since the beginning of the oil-price correction in the second half of 2014. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G1, G10, G2, G21 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk
The Distributional Origins of the Canada-US GDP and Labour Productivity Gaps Staff working paper 2024-49 James (Jim) C. MacGee, Joel Rodrigue We find the top 10% of the income distribution accounts for three-quarters of the gap in GDP per adult between Canada and the United States. The large gaps in income for high-income earners help distinguish between alternative explanations of this persistent gap in GDP per adult. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D3, D31, E, E2, E24, J, J2, J24, J6, J61, N, N1, N12, O, O4, O47, O5, O51 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply, Digitalization and productivity
November 6, 2024 Canada’s mortgage market—A question of balance Remarks Carolyn Rogers Economic Club of Canada Toronto, Ontario Senior Deputy Governor Carolyn Rogers looks at the mortgage market in Canada—past, present and future. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial stability, Monetary policy, Economy/Economic growth, Inflation targeting framework
Identification and Estimation of Risk Aversion in First-Price Auctions with Unobserved Auction Heterogeneity Staff working paper 2016-23 Serafin Grundl, Yu Zhu This paper shows point identification in first-price auction models with risk aversion and unobserved auction heterogeneity by exploiting multiple bids from each auction and variation in the number of bidders. The required exclusion restriction is shown to be consistent with a large class of entry models. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C14, C5, C57, D, D4, D44, L, L0, L00 Research Theme(s): Financial markets and funds management, Market structure, Models and tools, Econometric, statistical and computational methods