Should Banks Be Worried About Dividend Restrictions? Staff working paper 2023-49 Josef Schroth A regulator would want to restrict dividends to force banks to rebuild capital during a crisis. But such a policy is not time-consistent. A time-consistent policy would let banks gradually rebuild capital and pay dividends even when their equity remains below pre-crisis levels. 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
Understanding the Cross‐Country Effects of US Technology Shocks Staff working paper 2017-23 Thuy Lan Nguyen, Wataru Miyamoto Business cycles are substantially correlated across countries. Yet most existing models are not able to generate substantial transmission through international trade. We show that the nature of such transmission depends fundamentally on the features determining the responsiveness of labor supply and labor demand to international relative prices. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E30, F, F4, F41, F44, F6, F62 Research Theme(s): Models and tools, Economic models, Monetary policy, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness
Online Privacy and Information Disclosure by Consumers Staff working paper 2019-22 Shota Ichihashi A consumer discloses information to a multi-product seller, which learns about the consumer’s preferences, sets prices, and makes product recommendations. While the consumer benefits from accurate product recommendations, the seller may use the information to price discriminate. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D82, D83 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Economic models, Structural challenges, Digitalization and productivity
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
May 19, 2002 Private Capital Flows to Emerging-Market Economies Bank of Canada Review - Spring 2002 Jean-François Perrault This article explores the evolution of capital flows to emerging markets over the last 30 years with emphasis on the past decade. Capital markets in emerging-market economies have evolved substantially over the period, becoming increasingly deep and resilient. The author looks at how capital flows to these countries have changed in terms of magnitude, geographical distribution, the financial instruments used, and the country of origin. He also examines how changes in the investor base have affected these flows and reviews the factors underlying the growth of private capital flows in the 1990s. Content Type(s): Publications, Bank of Canada Review articles
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
The Trade War in Numbers Staff working paper 2018-57 Karyne B. Charbonneau, Anthony Landry We build upon new developments in the international trade literature to isolate and quantify the long-run economic impacts of tariff changes on the United States and the global economy. Content Type(s): Staff research, Staff working papers JEL Code(s): F, F1, F11, F13, F14, F15, F5, F50, F6, F62, F68 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness
January 27, 2012 Simulation Analysis: A Tool for Examining the Balance between Safety and Efficiency in Canada’s Large Value Transfer System Financial System Review - December 2005 Neville Arjani Content Type(s): Publications, Financial System Review articles
Examining recent revisions to CPI-common Staff analytical note 2022-15 Elyse Sullivan Unusually large revisions to CPI-common in recent months stem from increased common movements across consumer price index components amid broad inflationary pressures. With recent revisions, CPI-common is more closely aligned with the Bank of Canada’s other two preferred measures of core inflation. However, caution is necessary when interpreting real-time estimates of CPI-common in the current environment. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C1, C13, C18, E, E3, E31 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures
The Share of Systematic Variations in the Canadian Dollar—Part II Staff analytical note 2017-1 Jean-Sébastien Fontaine, Guillaume Nolin This analytical note examines how much of the systematic variation in the Canadian dollar is attributable to its sensitivity to commodity prices. We introduce a new “oil” portfolio that captures systematic variations when the exchange rates of commodity exporters and commodity importers move in opposite directions. Content Type(s): Staff research, Staff analytical notes JEL Code(s): F, F3, F31 Research Theme(s): Financial markets and funds management, International markets and currencies