BoC–BoE Sovereign Default Database: What’s new in 2024? Staff Analytical Note 2024-19 David Beers, Obiageri Ndukwe, Alex Charron The BoC–BoE database of sovereign debt defaults, published and updated annually by the Bank of Canada and the Bank of England, provides comprehensive estimates of stocks of government obligations in default. The 2024 edition updates the historical data and revisits sovereign defaults on local currency debt. Content Type(s): Staff research, Staff analytical notes Topic(s): Debt management, Development economics, Financial stability, International financial markets JEL Code(s): F, F3, F34, G, G1, G10, G14, G15
Housing Affordability and Parental Income Support Staff Working Paper 2024-28 Jason Allen, Kyra Carmichael, Robert Clark, Shaoteng Li, Nicolas Vincent In many countries, the cost of housing has greatly outpaced income growth, leading to a housing affordability crisis. Leveraging Canadian loan-level data and quasi-experimental variation in payment-to-income constraints, we document an increasing reliance of first-time homebuyers on financial help from their parents, through mortgage co-signing. We show that parental support can effectively relax borrowing constraints—potentially to riskier borrowers. Content Type(s): Staff research, Staff working papers Topic(s): Financial services, Financial system regulation and policies, Housing JEL Code(s): D, D6, D64, E, E2, E21, E24, G, G1, G18, G5, G51
Central Bank Digital Currency and Transmission of Monetary Policy Staff Working Paper 2024-27 Saroj Bhattarai, Mohammad Davoodalhosseini, Zhenning Zhao How does the transmission of monetary policy change when a central bank digital currency (CBDC) is introduced in the economy? Does CBDC design matter? We study these questions in a general equilibrium model with nominal rigidities, liquidity frictions, and a banking sector where commercial banks face a leverage constraint. Content Type(s): Staff research, Staff working papers Topic(s): Digital currencies and fintech, Interest rates, Monetary policy, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E3, E31, E4, E5, E50, E58, G, G2, G21, G5, G51
July 24, 2024 Bank of Canada Media Interview – Radio-Canada Nicolas Vincent, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada première’s Midi info. Content Type(s): Press, Media advisories
July 24, 2024 Bank of Canada Media Interview – Financial Post Tiff Macklem, Governor of the Bank of Canada, gave an interview to Jordan Gowling of the Financial Post. Content Type(s): Press, Media advisories