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2160 Results

December 13, 1999

Feedback Rules for Inflation Control: An Overview of Recent Literature

Feedback rules are rules aimed at guiding policy-makers as they face the problem of keeping inflation close to a desired path without causing variability elsewhere in the economy. These rules link short-term interest rates, controlled by the central bank, to the rate of inflation and/or its deviation from a target rate. The authors describe the most popular types of feedback rules and review some simulation results.

Firm Dynamics and Multifactor Productivity: An Empirical Exploration

Staff working paper 2018-15 Pierre St-Amant, David Tessier
There are indications that business dynamism has declined in advanced economies. In particular, firm entry and exit rates have fallen, suggesting that the creative destruction process has lost some of its vitality. Meanwhile, productivity growth has slowed. Some believe that lower entry and exit rates partly explain the weaker productivity growth.
May 17, 2012

Understanding Systemic Risk in the Banking Sector: A MacroFinancial Risk Assessment Framework

The MacroFinancial Risk Assessment Framework (MFRAF) models the interconnections between liquidity and solvency in a financial system, with multiple institutions linked through an interbank network. The MFRAF integrates funding liquidity risk as an endogenous outcome of the interactions between solvency risk and the liquidity profiles of banks, which is a complementary approach to the new […]
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E4, E44, G, G0, G01, G2, G21

Estimating the Appropriate Quantity of Settlement Balances in a Floor System

Staff discussion paper 2023-26 Narayan Bulusu, Matthew McNeely, Kaetlynd McRae, Jonathan Witmer
This paper presents two complementary approaches to estimating the appropriate quantity of settlement balances needed to effectively operate monetary policy under a floor system in Canada.
May 16, 2013

Explaining Canada’s Regional Migration Patterns

Understanding the factors that determine the migration of labour between regions is crucial for assessing the economy’s response to macroeconomic shocks and identifying policies that will encourage an efficient reallocation of labour. By examining the determinants of migration within Canada from 1991 to 2006, this article provides evidence that regional differences in employment rates and household incomes tend to increase labour migration, and that provincial borders and language differences are barriers to migration.
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): J, J6, J61, R, R2, R23

The Impact of Unemployment Insurance and Unsecured Credit on Business Cycles

Staff working paper 2023-22 Michael Irwin
This paper studies how unsecured consumer credit impacts the extent to which unemployment insurance (UI) policies smooth aggregate consumption fluctuations over the business cycle. Using a general equilibrium real business cycle model, I find that unsecured credit amplifies the extent to which UI smooths cyclical consumption fluctuations.
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