We examine how life insurers manage liquidity risks created by their business model. We find that Canadian life insurers did not face significant liquidity draws and continued their usual investm...
https://www.bankofcanada.ca/2024/04/staff-analytical-note-2024-7/
We investigate the unintended consequences of the Home Affordable Refinance Program (HARP). Originally designed to help borrowers refinance after the 2008–09 global financial crisis, HARP inadv...
https://www.bankofcanada.ca/2024/04/staff-working-paper-2024-11/
Using the microdata underlying the Canadian consumer price index, we study how often and by how much firms changed their prices during the COVID-19 pandemic. We find that the surge in inflation w...
https://www.bankofcanada.ca/2024/04/staff-analytical-note-2024-6/
We use data from the Canadian Survey of Consumer Expectations to understand how households are coping with high inflation and high interest rates. We build a subjective measure of financial stres...
https://www.bankofcanada.ca/2024/04/staff-analytical-note-2024-5/
This newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.
https://www.bankofcanada.ca/wp-content/uploads/2024/04/quarterly-research-newsletter-2024q1.pdf
We forecast recessions in Canada using an autoregressive (AR) probit model. The results highlight the short-term predictive power of the US economic activity and suggest that financial indicators...
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-10/
The Bank of Canada’s Merchant Acceptance Survey finds that 96% of small and medium-sized businesses in Canada accepted cash in 2023. Acceptance of debit and credit cards has increased to 89%, a...
https://www.bankofcanada.ca/2024/03/staff-discussion-paper-2024-2/
We examine the optimal amount of user anonymity in a central bank digital currency in the context of bank lending. Anonymity, defined as the lender’s inability to discern an entrepreneur’s ac...
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-9/
I investigate how monetary policy transmits to mortgage rates via the mortgage market concentration channel for both traditional and shadow banks in the United States from 2009 to 2019. On averag...
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-8/
We study the degree to which China’s 11th Five-Year Plan softens trade-offs between emissions and output. Our model suggests efficient regulation could have further increased aggregate producti...
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-7/