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3009 Results

Assessing Global Potential Output Growth: October 2020

This paper presents updated estimates of potential output growth for the global economy through 2022. Global potential output growth is expected to decline sharply in the aftermath of the COVID-19 pandemic and recover partially by the end of the projection horizon of the October 2020 Monetary Policy Report.
Content Type(s): Staff research, Staff discussion papers Research Topic(s): Potential output, Productivity JEL Code(s): E, E1, E10, E2, E20, O, O4

The Carry Trade, Portfolio Diversification, and the Adjustment of the Japanese Yen

Staff Discussion Paper 2008-2 Corinne Luu
In this paper, the author considers whether fundamentals or other factors can explain the yen's ongoing weakness. In particular, the importance of capital outflows due to the carry trade and longer-term portfolio investment outflows, which may be delaying the adjustment of the yen, are investigated. A simple portfolio model is developed, composed of a speculative […]
June 17, 2007

Trend Labour Supply in Canada: Implications of Demographic Shifts and the Increasing Labour Force Attachment of Women

While demographic change has been an ongoing process in Canada, labour market implications of an aging population will become more acute in coming years. This article discusses the anticipated slowing in the growth of trend labour input over the coming decades with the aging of the baby boomers, declining fertility rates, and the stabilization of the labour force attachment of women. As the pool of labour shrinks, employers and governments will be looking for ways to address barriers to continued labour force participation and firms will have a greater incentive to find ways of improving labour productivity.

How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms

Staff Working Paper 2024-44 Janet Hua Jiang, Rupal Kamdar, Kelin Lu, Daniela Puzzello
We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending.

Risk Sharing in the Presence of a Public Good

Staff Working Paper 2015-27 Josef Schroth
This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents’ relative preference for private versus public good consumption.

Losing Contact: The Impact of Contactless Payments on Cash Usage

Staff Working Paper 2020-56 Marie-Hélène Felt
Contactless payment cards are a competitive alternative to cash. Using Canadian panel data from 2010 to 2017, this study investigates whether contactless credit cards are an important contributor to the decline in the transactional use of cash. 
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