October 28, 2020 Monetary Policy Report – October 2020 The Bank expects Canada’s economy to grow by almost 4 percent on average in 2021 and 2022, following a decline of about 5 ½ percent in 2020. Content Type(s): Publications, Monetary Policy Report
November 21, 2003 Developments, Issues, and Initiatives in Retail Payments Bank of Canada Review - Autumn 2003 Sean O'Connor Innovations in basic information technologies, in payment applications, and in the availability of global markets, as well as substantial changes in financial sector policy, have fundamentally changed how the retail payments system in Canada operates. Principally, the volume and types of electronic payments have grown, and there is increased participation by diverse groups of financial and non-financial institutions as providers of retail payment services. The resulting policy problem for payment systems is how best to benefit from efficiency gains while managing payment risks. O'Connor examines the effect of the technological and legislative changes and the initiatives developed by the public and private sectors in such areas as the market arrangements for services; customer risks and costs for settling large-value retail payments; the security of payment information and the efficiency with which it is transmitted; and the effects of differing regulatory regimes on competition among providers of retail payment services. Content Type(s): Publications, Bank of Canada Review articles
Monetary Policy and Redistribution in Open Economies Staff working paper 2022-6 Xing Guo, Pablo Ottonello, Diego Perez We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, E5, E52, F, F4, F41, F44 Research Theme(s): Financial system, Financial institutions and intermediation, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness
Non-Bank Investors and Loan Renegotiations Staff working paper 2016-60 Teodora Paligorova, João Santos We document that the structure of syndicates affects loan renegotiations. Lead banks with large retained shares have positive effects on renegotiations. In contrast, more diverse syndicates deter renegotiations, but only for credit lines. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G2, G21, G23 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Household and business credit
MSTest: An R-Package for Testing Markov Switching Models Staff working paper 2026-7 Gabriel Rodriguez Rondon, Jean-Marie Dufour We present the R package MSTest, which implements hypothesis testing procedures to determine the number of regimes in Markov switching models. The package provides several testing frameworks, including Monte Carlo likelihood ratio tests, moment-based tests, parameter stability tests, and classical likelihood ratio procedures. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C12, C15, C18, C6, C63, C8, C87 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Economic models, Monetary policy, Real economy and forecasting
Centralizing Over-the-Counter Markets? Staff working paper 2021-39 Jason Allen, Milena Wittwer Would a shift in trading in fixed-income markets—from over the counter (bilateral trading) to a centralized electronic platform—improve welfare? We use trade-level data on the secondary market for Government of Canada debt to answer this question. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D4, D40, D47, G, G1, G10, G2, G20, L, L1, L10 Research Theme(s): Financial markets and funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation
June 8, 2017 Using Market-Based Indicators to Assess Banking System Resilience Financial System Review - June 2017 Cameron MacDonald, Maarten van Oordt This report reviews the use of quantitative tools to gauge market participants’ assessment of banking system resilience. These measures complement traditional balance-sheet metrics and suggest that markets consider large Canadian banks to be better placed to weather adverse shocks than banks in other advanced economies. Compared with regulatory capital ratios, however, the measures suggest less improvement in banking system resilience since the pre-crisis period. Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G0, G01, G1, G10, G2, G21
January 20, 2012 A Fundamental Review of Capital Charges Associated with Trading Activities Financial System Review - December 2011 Grahame Johnson Content Type(s): Publications, Financial System Review articles
Public vs. Private Payment Platforms: Market Impacts and Optimal Policy Staff working paper 2026-10 Youming Liu, Francisco Rivadeneyra, Edona Reshidi We study the competition between a welfare-maximizing public payment platform (e.g., CBDC or fast payment system) and a profit-maximizing private platform in a two-sided market, deriving optimal public pricing and showing how network effects, fragmentation, and policy mandates like zero fees or cost recovery shape welfare, usage, and fee incidence. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D4, E, E4, E42, E5, E58 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Retail payments
Is Money Essential? An Experimental Approach Staff working paper 2023-39 Janet Hua Jiang, Peter Norman, Daniela Puzzello, Bruno Sultanum, Randall Wright Monetary theory says that money is essential if it helps to achieve better incentive-feasible outcomes. We test this in the laboratory. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C92, E, E4, E5 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission