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 Research Topic(s): Fiscal policy, Potential output, Productivity JEL Code(s): D, D1, D14, D6, D61, D64, D8, D82, I, I2, I22, J, J2, J24
October 28, 2020 Monetary Policy Report – October 2020 The Bank expects Canada’s economy to grow by almost 4 percent on average in 2021 and 2022, following a decline of about 5 ½ percent in 2020. Content Type(s): Publications, Monetary Policy Report
March 11, 2021 COVID-19, savings and household spending Remarks (delivered virtually) Lawrence L. Schembri Restaurants Canada Toronto, Ontario Deputy Governor Lawrence Schembri talks about the Bank’s latest interest rate announcement and discusses how COVID-19 has affected savings and the outlook household spending. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Monetary policy, Recent economic and financial developments, Service sector
(Un)Conventional Monetary and Fiscal Policy Staff Working Paper 2023-6 Jing Cynthia Wu, Yinxi Xie We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments. Content Type(s): Staff research, Staff working papers Research Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E4, E6, E61, E62, E63
Symétrie des chocs touchant les régions canadiennes et choix d'un régime de change Staff Working Paper 1994-9 Alain DeSerres, René Lalonde The authors attempt to determine whether the primary advantage of the flexible exchange rate between Canada and the United States—the rapid adjustment of the real exchange rate following an asymmetrical shock—is as evident at the regional as at the national level. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates
The Impacts of Minimum Wage Increases on the Canadian Economy Staff Analytical Note 2017-26 Dany Brouillette, Daniel Gao, Olivier Gervais, Calista Cheung This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass-through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, J, J2, J21, J22, J23
Monetary Policy and Redistribution in Open Economies Staff Working Paper 2022-6 Xing Guo, Pablo Ottonello, Diego Perez We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rate regimes, Monetary policy JEL Code(s): E, E3, E32, E5, E52, F, F4, F41, F44
December 23, 2002 Systemic Risk, Designation, and the ACSS Financial System Review - December 2002 Carol Ann Northcott This report discusses the decision not to designate the Automated Clearing Settlement System as a systemically important system, as well as some of the research contributing to that decision. Content Type(s): Publications, Financial System Review articles
Recent Evolution of Canada’s Credit-to-GDP Gap: Measurement and Interpretation Staff Analytical Note 2017-25 Timothy Grieder, Dylan Hogg, Thibaut Duprey Over the past several years, the Bank for International Settlements has noted that Canada’s credit-to-GDP gap has widened and is above thresholds indicating future banking stress. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Financial stability, Monetary and financial indicators, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): D, D1, E, E3, E32, G, G0, G01, G1, G2, G21, G3, G30
Immigration and US Shelter Prices: The Role of Geographical and Immigrant Heterogeneity Staff Working Paper 2024-40 James Cabral, Walter Steingress The arrival of immigrants increases demand for housing and puts upward pressure on shelter prices. Using instrumental variables based on the ancestry composition of residents in US counties, we estimate the causal impact of immigration on local shelter prices. Content Type(s): Staff research, Staff working papers Research Topic(s): Housing, Inflation and prices, International topics, Regional economic developments JEL Code(s): J, J6, J61, R, R2, R23, R3, R31