Inflation, Output, and Welfare in the Laboratory Staff working paper 2023-11 Janet Hua Jiang, Daniela Puzzello, Cathy Zhang We investigate the effect of inflation on output and welfare in the laboratory. Consistent with monetary theory, we find that inflation acts as a tax on monetary exchange and reduces output and welfare. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
March 26, 2014 Oversight Activities during 2013 under the Payment Clearing and Settlement Act This report reviews the Bank of Canada's oversight activities during 2013 and priorities for 2014 pursuant to the Payment Clearing and Settlement Act (PCSA). This annual report is intended to provide transparency and accountability regarding the Bank's activities in this area. Content Type(s): Regulatory news
A Structural Model of the Global Oil Market Staff analytical note 2019-17 Reinhard Ellwanger This note presents a structural vector autoregressive (SVAR) model of the global oil market. The model identifies four types of shocks with different economic interpretations: oil supply shocks, oil-market-specific demand shocks, storage demand shocks and shocks to global economic growth. Content Type(s): Staff research, Staff analytical notes JEL Code(s): Q, Q4, Q41, Q43 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
Inequality in Parental Transfers and Optimal Need-Based Financial Aid Staff working paper 2019-7 Youngmin Park This paper studies optimal need-based financial aid when parental transfers—unobserved by policymakers—vary across and within families of similar means. Using data on U.S. college students, I document substantial inequality in parental transfers, especially among wealthier families. I then analyze how this affects aid design aimed at reducing inefficiencies from borrowing constraints and the aid itself. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D14, D6, D61, D64, D8, D82, I, I2, I22, J, J2, J24 Research Theme(s): Financial system, Household and business credit, Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
Household Food Inflation in Canada Staff working paper 2024-33 Olena Kostyshyna, Maude Ouellet We study food inflation rates for Canadian households during periods of low and high inflation from 2012Q4 to 2023Q4. Households experienced more varied inflation rates during the recent high inflation. Cumulative food inflation has been 2.2 percentage points higher for lower-income households than for highest-income households since the inflation surge. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E21, E3, E30, E31, L, L8, L81 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
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
Potential benefits and key risks of fiat-referenced cryptoassets Staff analytical note 2022-20 Hugh Ding, Natasha Khan, Bena Lands, Cameron MacDonald, Laura Zhao Cryptoassets that reference a national currency (commonly known as stablecoins) aim to peg their value to the reference currency and typically use a reserve of traditional financial assets to maintain the peg. The market value of these fiat-referenced cryptoassets has grown more than thirtyfold between early 2020 and mid-2022. We explore some of their potential benefits and key risks. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, G, G2, G28, L, O, O3 Research Theme(s): Financial system, Financial stability and systemic risk, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System Staff working paper 2021-64 Neville Arjani, Fuchun Li, Zhentong Lu Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, E, E4, E42, G, G1, G2, G28 Research Theme(s): Models and tools, Economic models, Money and payments, Payment and financial market infrastructures
March 11, 2021 COVID-19, savings and household spending Remarks (delivered virtually) Lawrence L. Schembri Restaurants Canada Toronto, Ontario Deputy Governor Lawrence Schembri talks about the Bank’s latest interest rate announcement and discusses how COVID-19 has affected savings and the outlook household spending. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
June 21, 2009 Financial System Review - June 2009 Policy-makers around the world met the intensification of the global financial crisis at the end of 2008 with a forceful response aimed at restoring confidence in the global financial system, promoting the flow of credit, and supporting economic activity.FSR Highlights - June 2009 Erratum: Legends for Chart 13 on page 15 of the June 2009 issue should read: Argentina (right scale), Mexico (left scale). See revised chart. Content Type(s): Publications, Financial Stability Report