February 17, 2011 Adverse Selection and Financial Crises Bank of Canada Review - Winter 2010-2011 Koralai Kirabaeva The recent financial crisis has highlighted the importance of adverse selection as a contributing factor to financial market instability. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Financial stability, Financial system regulation and policies, Market structure and pricing
June 15, 2007 Interpreting Canada's Productivity Performance in the Past Decade: Lessons from Recent Research Bank of Canada Review - Summer 2007 Richard Dion Dion examines the evolution of Canadian productivity since the mid-1990s, using the United States as a benchmark. During this period, trend productivity growth in Canada remained modest, whereas the U.S. witnessed a strong resurgence. Among the factors identified as potential root causes of Canada's lower productivity performance are a lower investment in information and communications technology, reallocation and adjustment costs associated with large relative price movements, and a weak demand for innovation. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Productivity, Recent economic and financial developments
Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers Staff Discussion Paper 2019-1 James Chapman, Carolyn A. Wilkins The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Bank notes, Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42, E5, E51, E58, H, H4, P, P4, P43
Degree of Internationalization and Performance: An Analysis of Canadian Banks Staff Working Paper 2005-32 Walid Hejazi, Eric Santor The international business literature measures the link between the degree of internationalization (DOI) of a firm's activities and its performance. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions JEL Code(s): F, F2, F23, G, G2, G21
November 18, 2010 Bank of Canada Review - Autumn 2010 The premise that exchange rate pass-through has declined is critically reassessed; intensity in the negative feedback process between financial sector developments and the real economy during the recent global crisis is examined; update on past decade’s changing trends in debt issuance in Canada relative to those in other capital markets. Content Type(s): Publications, Bank of Canada Review
September 15, 2008 Productivity in Canada: Does Firm Size Matter? Bank of Canada Review - Autumn 2008 Danny Leung, Césaire Meh, Yaz Terajima The research findings highlighted in this article suggest that firm-size differences play a significant role in explaining the productivity gap between Canada and the United States. The authors review factors that lead to a positive relationship between productivity and size and then look at Canadian evidence of this relationship at the firm level. They quantify the extent to which the change in Canadian productivity as well as the Canada-U.S. productivity differences can be accounted for by the change in the importance of large firms and identify several factors that play a role in determining average firm size and aggregate productivity. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Productivity
The Neutral Interest Rate: Past, Present and Future Staff Discussion Paper 2024-3 Matteo Cacciatore, Bruno Feunou, Galip Kemal Ozhan The decline in safe real interest rates over the past three decades has reignited discussions on the neutral real interest rate, known as R*. We address the determinants and estimation methods of R*, as well as the factors influencing its decline and its future trajectory. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Interest rates, Monetary policy, Monetary policy framework JEL Code(s): E, E4, E43, E5, E52, E6, E62
Housing and Tax Policy Staff Working Paper 2013-33 Sami Alpanda, Sarah Zubairy In this paper, we investigate the effects of housing-related tax policy measures on macroeconomic aggregates using a dynamic general-equilibrium model. Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Fiscal policy, Housing JEL Code(s): E, E6, E62, H, H2, H24, R, R3, R38
A Band-Aid Solution to Inflation Targeting Staff Working Paper 1997-11 Robert Amano, Richard Black, Marcel Kasumovich This paper reviews selectively the literature on exchange rate target zones and corresponding methodologies and examines whether they can be used to analyse the inflation-control problem. Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation targets JEL Code(s): E, E3, E31, E5, E50
A Spatial Model of Bank Branches in Canada Staff Working Paper 2020-4 Heng Chen, Matthew Strathearn Using data on bank branch locations across Canada from 2008 to 2018, we explore an interesting aspect of bank branch competition—geographic concentration. We find that bank branch density does not correlate with geographic and market concentration; however, we do find strong correlation with postal-code demographics. Content Type(s): Staff research, Staff working papers Research Topic(s): Firm dynamics, Market structure and pricing JEL Code(s): L, L1, R, R3