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
Intermediary Market Power and Capital Constraints Staff working paper 2023-51 Jason Allen, Milena Wittwer We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D4, D40, D44, G, G1, G12, G18, G2, G20, L, L1, L10 Research Theme(s): Financial markets and funds management, Funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation
October 26, 2018 Staff economic projections These forecasts are provided to Governing Council in preparation for monetary policy decisions. They are released once a year with a five-year lag.
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
June 23, 2003 Financial System Review - June 2003 This section of the Financial System Review examines the recent performance of the Canadian financial system and the factors, both domestic and international, that are influencing it. Content Type(s): Publications, Financial Stability Report
December 9, 2010 Financial System Review - December 2010 Although the global financial system continues to recover gradually from the unprecedented dislocations experienced in recent years, significant downside risks remain. Market concerns over acute fiscal strains in some euro-area countries have intensified sharply in recent weeks.FSR Highlights - December 2010 Content Type(s): Publications, Financial Stability Report
How Do Interest Rates Spur the Housing Market: Exploring Nonlinear Effects Staff analytical paper 2026-35 Benjamin Straus, Stéphane Surprenant, Kerem Tuzcuoglu In this note we examine how monetary policy affects housing demand, supply and prices in Canada, and whether these effects vary with labour market conditions Content Type(s): Staff research, Staff analytical paper JEL Code(s): C, C3, C32, E, E5, E52, R, R3, R31 Research Theme(s): Monetary policy, Monetary policy framework and transmission
International Banking and Cross-Border Effects of Regulation: Lessons from Canada Staff working paper 2016-34 H. Evren Damar, Adi Mordel We study how changes in prudential requirements affect cross-border lending of Canadian banks by utilizing an index that aggregates adjustments in key regulatory instruments across jurisdictions. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F3, F34, G, G0, G01, G2, G21 Research Theme(s): Financial system, Financial institutions and intermediation, Financial stability and systemic risk, Financial system regulation and oversight, Structural challenges, International trade, finance and competitiveness
Accounting for Real Exchange Rates Using Micro‐Data Staff working paper 2017-12 Mario J. Crucini, Anthony Landry The classical dichotomy predicts that all of the time-series variance in the aggregate real exchange rate is accounted for by non-traded goods in the consumer price index (CPI) basket because traded goods obey the Law of One Price. In stark contrast, Engel (1999) claimed the opposite: that traded goods accounted for all of the variance. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F3 Research Theme(s): Financial markets and funds management, International markets and currencies, Structural challenges, International trade, finance and competitiveness
Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013 Staff working paper 2016-48 Thuy Lan Nguyen, Wataru Miyamoto Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E1, E13, E3, E32, F, F4, F41, F44 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness