What Explains Month-End Funding Pressure in Canada? Staff discussion paper 2017-9 Christopher S. Sutherland The Canadian overnight repo market persistently shows signs of latent funding pressure around month-end periods. Both the overnight repo rate and Bank of Canada liquidity provision tend to rise in these windows. This paper proposes three non-mutually exclusive hypotheses to explain this phenomenon. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E4, E41, E43, E5, E52, E58, F, F3, F36, G, G1, G14, G15, G2, G21 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Monetary policy tools and implementation, Money and payments, Payment and financial market infrastructures
The Role of Long-Term Contracting in Business Lending Staff working paper 2024-2 Phoebe Tian This paper examines inefficiencies arising from a lack of long-term contracting in small business lending in China. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D83, D86, G, G2, G21, L, L1, L14, L2, L26 Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission
What’s Up with Unit Non-Response in the Bank of Canada’s Business Outlook Survey? The Effect of Staff Tenure Staff discussion paper 2017-11 Sarah Miller, David Amirault, Laurent Martin Since 1997, the Bank of Canada’s regional offices have been conducting the Business Outlook Survey (BOS), a quarterly survey of business conditions. Survey responses are gathered through face-to-face, confidential consultations with a sample of private sector firms representative of the various sectors, firm sizes and regions across Canada. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C2, C21, C8, C81, D, D2, D22 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting
A Q-Theory of Banks Staff working paper 2021-44 Juliane Beganau, Saki Bigio, Jeremy Majerovitz, Matías Vieyra Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, G, G2, G21, G3, G32, G33 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission
Understanding Trend Inflation Through the Lens of the Goods and Services Sectors Staff working paper 2020-45 Yunjong Eo, Luis Uzeda, Benjamin Wong The goods and services sectors have experienced considerably different dynamics over the past three decades. Our goal in this paper is to understand how such contrasting behaviors at the sectoral level affect the aggregate level of trend inflation dynamics. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C11, C3, C32, E, E3, E31, E5, E52 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
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
Labour Force Participation: A Comparison of the United States and Canada Staff analytical note 2017-9 James Ketcheson, Natalia Kyui, Benoit Vincent This note explores the drivers behind the recent increase in the US participation rate in the labour market and assesses the likelihood of a similar gain in Canada. The growth in the US participation rate has largely been due to a pickup in the participation of prime-age workers following a post-recession decline. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, E24, J, J2, J21 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
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
Modelling the Sovereign Debt Strategy: A Practical Primer Staff discussion paper 2025-16 Nicolas Audet, Adam Epp, Jeffrey Gao, Joe Ning We provide a primer on the role of debt modelling in informing the sovereign debt issuance strategy and discuss how specific challenges faced by debt managers can influence model design decisions. These insights are supported by our experiences using the Canadian Debt Strategy Model to guide policy decisions. Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G1, G11, G17, H, H6, H63, H68 Research Theme(s): Financial markets and funds management, Funds management, Models and tools, Economic models