The 2021–22 Surge in Inflation Staff Discussion Paper 2023-3 Oleksiy Kryvtsov, James (Jim) C. MacGee, Luis Uzeda The rise in inflation in 2021–22 sparked a growing literature and debate over the causes of the surge as well as the near- and medium-term path for inflation. This review offers three key messages. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Inflation and prices, Inflation targets, Monetary policy JEL Code(s): E, E3, E31, E5, E52, E58
September 11, 2009 Agency Conflicts in the Process of Securitization Bank of Canada Review - Autumn 2009 Teodora Paligorova Recent evidence finds a positive association between the prevalence of loans of inferior quality and the growth in securitized products. Some attribute this development to the lack of incentives for originators to screen and monitor the performance of securitized loans; others stress that certain factors, such as balance-sheet management, also contributed to the problem, making it difficult to pin down the reason for the proliferation of such loans during the period of high securitization growth. The author reviews the conflicts of interest between participants in the securitization process that contributed to the ongoing financial turmoil and highlights the most recent policy measures and potential solutions for ameliorating these agency issues. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Financial institutions, Financial markets
Transmission of Cyber Risk Through the Canadian Wholesale Payment System Staff Working Paper 2022-23 Anneke Kosse, Zhentong Lu This paper studies how the impact of a cyber attack that paralyzes one or multiple banks' ability to send payments would transmit to other banks through the Canadian wholesale payment system. Based on historical payment data, we simulate a wide range of scenarios and evaluate the total payment disruption in the system. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability, Payment clearing and settlement systems JEL Code(s): C, C4, C49, E, E4, E42, E47, G, G2, G21
Banking Crises and Contagion: Empirical Evidence Staff Working Paper 2003-1 Eric Santor Recent events, such as the East Asian, Mexican, Scandinavian, and Argentinian crises, have sparked considerable interest in exploring how shocks experienced by one country can spread vis-à-vis real and nominal links to other countries' banking systems. Given the large costs associated with banking-system failures, both economists and policy-makers are interested in predicting the onset of banking crises and assessing the likelihood of contagion during crisis events. Content Type(s): Staff research, Staff working papers Research Topic(s): International topics JEL Code(s): F, F3, F30, G, G2, G20
What Drives Bank-Intermediated Trade Finance? Evidence from Cross-Country Analysis Staff Working Paper 2015-8 Jose Maria Serena, Garima Vasishtha Empirical work on the underlying causes of the recent dislocations in bank-intermediated trade finance has been limited by the poor availability of hard data. This paper analyzes the key determinants of bank-intermediated trade finance using a novel data set covering ten banking jurisdictions. Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, International financial markets, International topics JEL Code(s): F, F1, F14, F19
Central Bank Forecasting: A Survey Staff Working Paper 2023-18 Carola Conces Binder, Rodrigo Sekkel We review the literature on central bank forecasting with a special focus on the Federal Reserve, European Central Bank, Bank of England and Bank of Canada. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy JEL Code(s): E, E4, E47, E5, E52, E58
May 25, 2020 Monetary policy in unknowable times Lecture Stephen S. Poloz Eric J. Hanson Memorial Lecture University of Alberta Edmonton, Alberta Governor Stephen S. Poloz discusses the evolution of the way the Bank takes a risk-management approach in the conduct of monetary policy, and what this implies for the recovery from the pandemic. Content Type(s): Press, Speeches and appearances, Lectures Research Topic(s): Coronavirus disease (COVID-19), Financial stability, Inflation targets, Monetary policy, Monetary policy and uncertainty, Monetary policy framework, Monetary policy implementation
The Elements of the Global Network for Large-Value Funds Transfers Staff Working Paper 2001-1 James Dingle The author describes the various elements of the global payment network for large-value funds transfers (G-LVTN) in order to provide a convenient reference document intended for readers in the academic, legal, and financial communities. Content Type(s): Staff research, Staff working papers Research Topic(s): Payment clearing and settlement systems JEL Code(s): E, E4, E40, E6, E61
Interaction of Macroprudential and Monetary Policies: Practice Ahead of Theory Staff Discussion Paper 2024-18 Thibaut Duprey, Yaz Terajima, Jing Yang We draw on the Canadian experience to examine how monetary and macroprudential policies interact and possibly complement each other in achieving their respective price and financial stability objectives. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Financial stability, Monetary policy JEL Code(s): E, E3, E37, E5, E52, E58, E6, E61, G, G0, G01, G2, G21, G28
May 11, 2017 The Digital Economy Bank of Canada Review - Spring 2017 Chris D'Souza, David Williams Digital technologies—cloud computing, the Internet of Things, advanced robotics, big data analytics, artificial intelligence and machine learning, social media, 3D printing, augmented reality, virtual reality, e-money and distributed ledgers—are transforming the way busi-nesses operate. How does this transformation compare with past industrial revolutions? How are digital technologies changing production systems across industries? Agile firms that use knowledge intensively and have high levels of both organizational and human capital appear set to realize the greatest benefits from digitalization. Finally, what are the implications for productivity, labour markets, inflation and monetary policy as we transition to the digital economy? Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Firm dynamics, Monetary policy, Productivity JEL Code(s): D, D2, D24, L, L1, L10, O, O1, O3, O33