The Institutional and Political Determinants of Fiscal Adjustment Staff Working Paper 2006-1 Robert Lavigne The author empirically assesses the effects of institutional and political factors on the need and willingness of governments to make large fiscal adjustments. Content Type(s): Staff research, Staff working papers Topic(s): Development economics, Econometric and statistical methods, Fiscal policy, International topics JEL Code(s): E, E6, E62, O, O1, O17, O19
An Empirical Analysis of Dynamic Interrelationships Among Inflation, Inflation Uncertainty, Relative Price Dispersion, and Output Growth Staff Working Paper 2002-39 Francis Vitek Within a unified framework, the author conducts an empirical investigation of dynamic interrelationships among inflation, inflation uncertainty, relative price dispersion, and output growth. Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices JEL Code(s): E, E3, E31
Cross-Country Estimates of the Degree of Fiscal Dominance and Central Bank Independence Staff Working Paper 2007-36 Carlos De Resende This paper studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level. Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Fiscal policy, Inflation: costs and benefits JEL Code(s): E, E3, E31, E4, E42, E5, E50, E6, E63
Pricing Indefinitely Lived Assets: Experimental Evidence Staff Working Paper 2023-25 John Duffy, Janet Hua Jiang, Huan Xie We study the trading of an asset with bankruptcy risk. The traded price of the asset is, on average, 40% of the expected total dividend payments. We investigate which economic models can explain the low traded price. Content Type(s): Staff research, Staff working papers Topic(s): Asset pricing, Financial markets JEL Code(s): C, C9, C91, C92, D, D8, D81, G, G1, G12
Simulating Intraday Transactions in the Canadian Retail Batch System Staff Working Paper 2023-1 Nellie Zhang This paper proposes a unique approach to simulate intraday transactions in the Canadian retail payments batch system when such transactions are unobtainable. The simulation procedure has potential for helping with data-deficient problems where only high-level aggregate information is available. Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Payment clearing and settlement systems JEL Code(s): C, C6, C63, E, E4, E42, E5, E58
January 30, 2004 Annual Report 2003 At the Bank of Canada, we have worked hard over the past several years to define our goals and our methods for achieving them. We have continued to strengthen our monetary policy framework, and we have established priorities in all areas of our operations to help us meet our strategic objectives. In 2002, the Bank set out a medium-term plan for the period 2003–05. The plan’s clearly defined policy frameworks and priorities were critical in guiding our analysis and our decisions in 2003, a year in which Canadians across the country were affected by a number of severe and unanticipated events. Content Type(s): Publications, Annual Report
How Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary Economy Staff Working Paper 2021-16 Janet Hua Jiang, Daniela Puzzello, Cathy Zhang Standard monetary models adopt an infinite horizon with discounting. Testing these models in the lab requires implementing this horizon within a limited time frame. We compare three approaches to such an implementation and discuss their relative advantages. Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Economic models, Inflation and prices JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40
On the Evolution of the United Kingdom Price Distributions Staff Working Paper 2018-25 Ba M. Chu, Kim Huynh, David T. Jacho-Chávez, Oleksiy Kryvtsov We propose a functional principal components method that accounts for stratified random sample weighting and time dependence in the observations to understand the evolution of distributions of monthly micro-level consumer prices for the United Kingdom (UK). Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Inflation and prices JEL Code(s): C, C1, C14, C8, C83, E, E3, E31, E37
Financial Distress and Hedging: Evidence from Canadian Oil Firms Staff Discussion Paper 2019-4 Kun Mo, Farrukh Suvankulov, Sophie Griffiths The paper explores the link between financial distress and the commodity price hedging behaviour of Canadian oil firms. Content Type(s): Staff research, Staff discussion papers Topic(s): Financial markets, Firm dynamics JEL Code(s): G, G3, G32, Q, Q4, Q40
Financial Intermediation and Fire Sales with Liquidity Risk Pricing Staff Working Paper 2024-18 Yuteng Cheng, Roberto Robatto We provide a theory of fire sales in which potential buyers are subject to liquidity shocks and frictions that limit their ability to resell assets. Viewed through the lens of the model, the liquidity requirements proposed by the U. S. Securities and Exchange Commission for these intermediaries could hurt the economy. Content Type(s): Staff research, Staff working papers Topic(s): Asset pricing, Financial markets, Financial system regulation and policies JEL Code(s): G, G1, G12, G2, G23, G28