How Far Do Canadians Need to Travel to Access Cash? Staff discussion paper 2023-28 Heng Chen, Daneal O’Habib, Hongyu Xiao This paper develops a travel-based metric to measure Canadians’ access to cash from automated banking machines (ABMs) and financial institution branches. We find that, overall, access to cash remained stable between 2019 and 2022. The total number of ABMs in Canada increased by 3.7% and the total number of branches decreased by 5.2% during that period. Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G2, G21, J, J1, J15, R, R5, R51 Research Theme(s): Money and payments, Cash and bank notes
Fintech: Is This Time Different? A Framework for Assessing Risks and Opportunities for Central Banks Staff discussion paper 2017-10 Meyer Aaron, Francisco Rivadeneyra, Samantha Sohal We investigate the risks and opportunities to the mandates of central banks arising from fintech developments. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E4, E42, G, G1, G2, L, L1 Research Theme(s): Financial system, Financial institutions and intermediation, Financial system regulation and oversight, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
February 21, 2013 The U.S. Recovery from the Great Recession: A Story of Debt and Deleveraging Bank of Canada Review - Winter 2012-2013 Brady Lavender, Nicolas Parent The U.S. recovery from the Great Recession has been slow relative to other postwar-era recoveries in the United States. Encouraged by loose lending standards in the pre-crisis period, U.S. households took on unsustainable amounts of debt, making them vulnerable to adverse shocks. Subsequently, a considerable drop in asset prices forced households to repair their balance sheets. While there has been progress in household deleveraging, the government sector now needs to delever, which will restrain growth over the next few years. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E2, E21, E6, E60
Anchored Inflation Expectations: What Recent Data Reveal Staff working paper 2025-5 Olena Kostyshyna, Isabelle Salle, Hung Truong We analyze micro-level data from the Canadian Survey of Consumer Expectations through the lens of a heterogeneous-expectations model to study how inflation expectations form over the business cycle. We provide new insights into how households form expectations, documenting that forecasting behaviours, attention and noise in beliefs vary across socio-demographic groups and correlate with views about monetary policy. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D84, E, E3, E31, E7, E70 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting
December 10, 2007 Inflation Targeting, Price-Level Targeting, and Fluctuations in Canada's Terms of Trade Bank of Canada Review - Winter 2007-2008 Donald Coletti, René Lalonde Coletti and Lalonde compare inflation targeting and price-level targeting in the context of a small open economy subject to sizable terms-of-trade shocks. The authors summarize recent research that compares the ability of price-level targeting and inflation targeting to stabilize the macroeconomy when confronted with shocks similar to those experienced by Canada in recent years. Their preliminary results suggest that price-level targeting may represent a feasible alternative to traditional inflation targeting. Their article also provides insight into the direction of current research in this area at the Bank. Content Type(s): Publications, Bank of Canada Review articles
Untapped Potential: Mobile Device Ownership and Mobile Payments in Canada Staff working paper 2024-25 Marie-Hélène Felt, Angelika Welte, Katrina Talavera We present a two-stage model of mobile phone and mobile payment usage that controls for selectivity. This reveals unobserved factors that work against having a mobile phone and toward mobile paying. Therefore, people who are unable to acquire or choose not to own a mobile device might have unmet payment needs. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, C39, D, D1, D12, E, E4, E42 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Digital assets and fintech, Retail payments
The impact of a central bank digital currency on payments at the point of sale Staff analytical note 2024-27 Walter Engert, Oleksandr Shcherbakov, André Stenzel We simulate the impact of a central bank digital currency (CBDC) on consumer adoption, merchant acceptance and use of different payment methods. Modest frictions that deter consumer adoption of a CBDC inhibit its market penetration. Minor pricing responses by financial institutions and payment service providers further reduce the impact of a CBDC. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C5, C51, D, D1, D12, E, E4, E42, L, L1, L14, L5, L52 Research Theme(s): Money and payments, Digital assets and fintech, Retail payments
Interbank Asset-Liability Networks with Fire Sale Management Staff working paper 2020-41 Zachary Feinstein, Grzegorz Halaj Raising liquidity when funding is stressed creates pressure on the financial market. Liquidating large quantities of assets depresses their prices and may amplify funding shocks. How do banks weathering a funding crisis contribute to contagion risk? Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C62, C63, C7, C72, G, G0, G01, G1, G11 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
What Drives Bitcoin Fees? Using Segwit to Assess Bitcoin's Long-Run Sustainability Staff working paper 2022-2 Colin Brown, Jonathan Chiu, Thorsten Koeppl We explore what drives transaction fees in the Bitcoin system and consider whether Bitcoin can remain tamper proof in the long run. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E42, G, G2 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures
The Extensive Margin of Trade and Monetary Policy Staff working paper 2018-37 Yuko Imura, Malik Shukayev This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E5, E52, F, F1, F12, F4, F44 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness