November 23, 2011 Renewing Canada’s Monetary Policy Framework Remarks Mark Carney Board of Trade of Metropolitan Montreal Montréal, Quebec Governor Mark Carney discusses the key elements of Canada’s inflation-targeting regime. Content Type(s): Press, Speeches and appearances, Remarks
May 15, 2014 Double Coincidence of Needs: Pension Funds and Financial Stability Remarks Lawrence L. Schembri Pension Investment Association of Canada Québec, Québec Deputy Governor Lawrence Schembri discusses pension funds and financial stability. Content Type(s): Press, Speeches and appearances, Remarks
On the Welfare Effects of Credit Arrangements Staff Working Paper 2012-43 Jonathan Chiu, Mei Dong, Enchuan Shao This paper studies the welfare effects of different credit arrangements and how these effects depend on the trading mechanism and inflation. In a competitive market, a deviation from the Friedman rule is always sub-optimal. Moreover, credit arrangements can be welfare-reducing, because increased consumption by credit users will drive up the price level so that money users have to reduce consumption when facing a binding liquidity restraint. Content Type(s): Staff research, Staff working papers Research Topic(s): Credit and credit aggregates, Payment clearing and settlement systems JEL Code(s): E, E4, E40, E5, E50
Communicating Uncertainty in Monetary Policy Staff Discussion Paper 2017-14 Sharon Kozicki, Jill Vardy While central banks cannot provide complete foresight with respect to their future policy actions, it is in the interests of both central banks and market participants that central banks be transparent about their reaction functions and how they may evolve in response to economic developments, shocks, and risks to their outlooks. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Credibility, Monetary policy, Monetary policy and uncertainty, Monetary policy communications JEL Code(s): E, E5, E52, E58, E6, E61, E65
Anticipating changes in bank capital buffer requirements Staff Analytical Note 2025-27 Josef Schroth Time-varying capital buffer requirements are a powerful tool that allow bank regulators to avoid severe financial stress without the cost of imposing very high levels of capital. However, this tool is only effective if banks understand how it is used. I present a model that banks and financial market participants can use to anticipate how time-varying capital buffer requirements change over time. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Credit risk management, Financial stability, Financial system regulation and policies JEL Code(s): E, E1, E13, E3, E32, E4, E44
Mixed Frequency Forecasts for Chinese GDP Staff Working Paper 2011-11 Philipp Maier We evaluate different approaches for using monthly indicators to predict Chinese GDP for the current and the next quarter (‘nowcasts’ and ‘forecasts’, respectively). We use three types of mixed-frequency models, one based on an economic activity indicator (Liu et al., 2007), one based on averaging over indicator models (Stock and Watson, 2004), and a static factor model (Stock and Watson, 2002). Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, International topics JEL Code(s): C, C5, C50, C53, E, E3, E37, E4, E47
Rollover Risk and the Maturity Transformation Function of Banks Staff Working Paper 2014-8 Teodora Paligorova, João Santos This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the loan yield curve becomes steeper with banks’ increasing use of short-term funding. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial stability JEL Code(s): G, G2, G21
2017 Methods-of-Payment Survey: Sample Calibration and Variance Estimation Technical Report No. 114 Heng Chen, Marie-Hélène Felt, Christopher Henry This technical report describes sampling, weighting and variance estimation for the Bank of Canada’s 2017 Methods-of-Payment Survey. Under quota sampling, a raking ratio method is implemented to generate weights with both post-stratification and nonparametric nonresponse weight adjustments. Content Type(s): Staff research, Technical reports Research Topic(s): Econometric and statistical methods JEL Code(s): C, C8, C81, C83
Competing Currencies in the Laboratory Staff Working Paper 2017-53 Janet Hua Jiang, Cathy Zhang We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium selection. Content Type(s): Staff research, Staff working papers Research Topic(s): Central bank research, Digital currencies and fintech JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40
Efficiency and Bargaining Power in the Interbank Loan Market Staff Working Paper 2012-29 Jason Allen, James Chapman, Federico Echenique, Matthew Shum Using detailed loan transactions-level data we examine the efficiency of an overnight interbank lending market, and the bargaining power of its participants. Our analysis relies on the equilibrium concept of the core, which imposes a set of no-arbitrage conditions on trades in the market. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Payment clearing and settlement systems JEL Code(s): C, C7, C71, E, E5, E58, G, G2, G21, G28