Retrieving Implied Financial Networks from Bank Balance-Sheet and Market Data Staff working paper 2017-30 Jose Fique In complex and interconnected banking systems, counterparty risk does not depend only on the risk of the immediate counterparty but also on the risk of others in the network of exposures. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C63, D, D8, D85, G, G2, G21 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
Ambiguity, Nominal Bond Yields and Real Bond Yields Staff working paper 2018-24 Guihai Zhao Equilibrium bond-pricing models rely on inflation being bad news for future growth to generate upward-sloping nominal yield curves. We develop a model that can generate upward-sloping nominal and real yield curves by instead using ambiguity about inflation and growth. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E43, G, G0, G00, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
Trade Flows and Exchange Rates: Importers, Exporters and Products Staff working paper 2019-41 Michael Devereux, Wei Dong, Ben Tomlin Using highly disaggregated transaction-level trade data, we document the importance of new firm-level trade partner relationships and the addition of new products to existing relationships in driving aggregate trade flows. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F1, F4 Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness
Alternative Futures for Government of Canada Debt Management Staff discussion paper 2018-15 Corey Garriott, Sophie Lefebvre, Guillaume Nolin, Francisco Rivadeneyra, Adrian Walton This paper presents four blue-sky ideas for lowering the cost of the Government of Canada’s debt without increasing the debt’s risk profile. We argue that each idea would improve the secondary-market liquidity of government debt, thereby increasing the demand for government bonds and thus lowering their cost at issuance. Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G1, G12, G2, G24, H, H6, H63 Research Theme(s): Financial markets and funds management, Funds management, Market functioning, Market structure
Cash in the Pocket, Cash in the Cloud: Cash Holdings of Bitcoin Owners Staff working paper 2022-26 Daniela Balutel, Christopher Henry, Kim Huynh, Marcel Voia We estimate the effect that owning Bitcoin has on the amount of cash held by Canadian consumers. Our results question the view that adopting certain new technologies, such as Bitcoin, leads to a decline in cash holdings. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C1, C12, E, E4, O, O3, O33, O5, O51 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Cash and bank notes, Digital assets and fintech
Macroprudential Policy with Capital Buffers Staff working paper 2019-8 Josef Schroth The countercyclical capital buffer is part of Basel III, the set of regulatory measures developed in response to the financial crisis of 2007–09. This study focuses on how time-varying capital buffers can address inefficiencies in economies with endogenous financial crises. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E1, E13, E3, E32, E4, E44 Research Theme(s): Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Household and business credit
Financial Development Beyond the Formal Financial Market Staff working paper 2018-49 Lin Shao This paper studies the effects of financial development, taking into account both formal and informal financing. Using cross-country firm-level data, we document that informal financing is utilized more by rich countries than poor countries. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, O, O1, O17, O4, O47 Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit, Monetary policy, Real economy and forecasting
October 15, 2007 Bank of Canada Review - Autumn 2007 Cover page Siamese Gaming Tokens The tokens pictured here are part of the National Currency Collection, Bank of Canada. Photography by Gord Carter, Ottawa. Content Type(s): Publications, Bank of Canada Review
Vertical Specialization and Gains from Trade Staff working paper 2017-17 Patrick Alexander Multi-stage production is widely recognized as an important feature of the modern global economy. This feature has been incorporated into many state-of-the-art quantitative trade models, and has been shown to deliver significant additional gains from international trade. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F1, F11, F14, F6, F60 Research Theme(s): Models and tools, Economic models, Structural challenges, International trade, finance and competitiveness
Multibank Holding Companies and Bank Stability Staff working paper 2018-51 Radoslav Raykov, Consuelo Silva-Buston This paper studies the relationship between bank holding company affiliation and the individual and systemic risk of banks. Using the 2005 hurricane season in the US as an exogenous shock to bank balance sheets, we show that banks that are part of a holding parent company are more resilient than independent banks. Content Type(s): Staff research, Staff working papers JEL Code(s): G, G1, G2 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk