Global Commodity Markets and Rebalancing in China: The Case of Copper Staff discussion paper 2019-3 Jeannine Bailliu, Doga Bilgin, Kun Mo, Kurt Niquidet, Benjamin Sawatzky Given that China accounts for about half of global copper consumption, it is reasonable to expect that any significant change in Chinese copper consumption will have an impact on the global market. Content Type(s): Staff research, Staff discussion papers JEL Code(s): O, O1, O13, O14, Q, Q0, Q02 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness
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
November 16, 2017 Bank of Canada Review - Autumn 2017 Is shale oil production in the United States a factor in the 2014 oil price decline? Which methods of payment are commonly accepted by merchants in Canada? Bank researchers share their insights on these topics. They also provide an update on the neutral rate of interest as well as on changes to the Bank’s operational framework for market operations. Content Type(s): Publications, Bank of Canada Review
Canada’s Monetary Policy Report: If Text Could Speak, What Would It Say? Staff analytical note 2019-5 André Binette, Dmitri Tchebotarev This note analyzes the evolution of the narrative in the Bank of Canada’s Monetary Policy Report (MPR). It presents descriptive statistics on the core text, including length, most frequently used words and readability level—the three Ls. Although each Governor of the Bank of Canada focuses on the macroeconomic events of the day and the mandate of inflation targeting, we observe that the language used in the MPR varies somewhat from one Governor’s tenure to the next. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E0, E02, E5, E52 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Monetary policy framework and transmission, Real economy and forecasting
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
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
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
Credit Crunches from Occasionally Binding Bank Borrowing Constraints Staff working paper 2017-57 Tom D. Holden, Paul Levine, Jonathan Swarbrick We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E22, E3, E32, E5, E51, G, G2 Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit, Models and tools, Economic models
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
March 2, 2017 Thermometer Rising—Climate Change and Canada’s Economic Future Remarks Timothy Lane Finance and Sustainability Initiative Montréal, Quebec Deputy Governor Tim Lane discusses the implications of climate change—and actions to address it—for Canada’s economy and financial system. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economic models, Economy/Economic growth