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2120 Results

Settlement Balances Deconstructed

Because of the COVID-19 pandemic, public interest in the Bank’s balance sheet and, more specifically, the size of settlement balances, has grown. This paper deconstructs the concept of settlement balances and provides some context on their history, current state and possible future evolution.

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.

The Complex Adjustment of the Canadian Economy to Lower Commodity Prices

In this analytical note, we provide a comprehensive assessment of the complex structural adjustment facing the Canadian economy following the commodity price decline since mid-2014. We quantify separately the impacts coming from the commodity sector restructuring and the broader effect of significantly lower terms of trade.

Identifying the Degree of Collusion Under Proportional Reduction

Staff working paper 2017-51 Oleksandr Shcherbakov, Naoki Wakamori
Proportional reduction is a common cartel practice in which cartel members reduce their output proportionately. We develop a method to quantify this reduction relative to a benchmark market equilibrium scenario and relate the reduction to the traditional conduct parameter.

Liquidity Usage and Payment Delay Estimates of the New Canadian High Value Payments System

Staff discussion paper 2020-9 Francisco Rivadeneyra, Nellie Zhang
As part of modernizing its core payments infrastructure, Canada will replace the Large Value Transfer System (LVTS) with a new Real-Time Gross Settlement (RTGS) system called Lynx. An important question for policy-makers is how Lynx should be designed.

Social Learning and Monetary Policy at the Effective Lower Bound

This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.

The 2021–22 Merchant Acceptance Survey Pilot Study

Staff discussion paper 2023-1 Angelika Welte, Joy Wu
The rise in digital payment innovations has spurred a discussion about the future of cash at the point of sale. The Bank conducted the 2021–22 Merchant Acceptance Survey Pilot Study to study trends in merchant cash acceptance and monitor conditions for the potential issuance of a central bank digital currency.

Rising US LNG Exports and Global Natural Gas Price Convergence

Staff discussion paper 2021-14 Robert Ialenti
We assess how rising exports of US liquefied natural gas affect the convergence of natural gas prices worldwide. Our results may have implications for the development of future LNG export capacity in Canada.
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