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Monetary policy implementation in a negative rate environment

Boutros, Michael; Witmer, Jonathan - 2017

Monetary policy implementation could, in theory, be constrained by deeply negative rates since overnight market …

Persistent link: https://www.econbiz.de/10012014552

What drives episodes of settlement fails in the government of Canada bond market?

Fontaine, Jean-Sébastien; Pinnington, James; Walton, Adrian - 2017

We study settlement fails for trades in the Government of Canada bond market. We find that settlement fails do not … cost for borrowing a bond is high, which is likely because of frictions acting as constraints on the price to borrow a bond … recirculation of scarce bonds and may improve the functioning of the bond market. …

Persistent link: https://www.econbiz.de/10012014437

Quantifying the economic benefits of payments modernization: The case of the large-value payment system

Arjani, Neville; Li, Fuchun; Lu, Zhentong - 2021

In this paper, we develop a discrete choice framework to quantify the economic benefits of payments modernization in Canada. Focusing on Canada's large-value transfer system (LVTS), we first estimate participants' preferences for liquidity cost, payment safety and the network effect by...

Persistent link: https://www.econbiz.de/10013272200

Contagion in dealer networks

Fontaine, Jean-Sébastien; Walton, Adrian - 2020

Dealer networks provide essential intermediation services in over-the-counter markets. We document the response of dealer networks to the arrival of new public information. We find that after public news releases, dealer networks become more complex and channel larger flows of securities between...

Persistent link: https://www.econbiz.de/10012619551

The side effects of safe asset creation

Acharya, Sushant; Dogra, Keshav - 2021

We present an incomplete markets model to understand the costs and benefits of increasing government debt when an increased demand for safety pushes the natural rate of interest below zero. A higher demand for safe assets causes the ZLB to bind, increasing unemployment. Higher government debt...

Persistent link: https://www.econbiz.de/10012695564

Policy rules for capital controls

Pasricha, Gurnain Kaur - 2017

This paper attempts to borrow the tradition of estimating policy reaction functions in monetary policy literature and apply it to capital controls policy literature. Using a novel weekly dataset on capital controls policy actions in 21 emerging economies over the period 1 January 2001 to 31...

Persistent link: https://www.econbiz.de/10012014450

Transmission of cyber risk through the Canadian wholesale payments system

Kosse, Anneke; Lu, Zhentong - 2022

In this paper, we study how the impact of a cyber-attack that paralyzes one or multiple banks' ability to send payments would transmit to other banks through the Canadian wholesale payments system. Based on historical payment data, we simulate a wide range of scenarios and evaluate the total...

Persistent link: https://www.econbiz.de/10013396506

Cash in the pocket, cash in the cloud: Cash holdings of Bitcoin owners

Balutel, Daniela; Henry, Christopher; Huynh, Kim P.; … - 2022

We estimate the effect of Bitcoin ownership on the level of cash holdings of Canadian consumers. Bitcoin ownership positively correlates with cash holdings even after accounting for selection into ownership via a control function approach. On average, Bitcoin owners hold 83 percent (in 2018) to...

Persistent link: https://www.econbiz.de/10013396509

Private digital cryptoassets as investment? Bitcoin ownership and use in Canada, 2016-2021

Balutel, Daniela; Engert, Walter; Henry, Christopher; … - 2022

This report studies the dynamics of Bitcoin awareness and ownership from 2016 to 2021, using the Bank of Canada's Bitcoin Omnibus Surveys (BTCOS). In 2021, Canadians' awareness of Bitcoin remained stable at about 90%, while ownership increased to 13% from the 5% observed in 2018-2020. Canadian...

Persistent link: https://www.econbiz.de/10014304191

(Un)conventional monetary and fiscal policy

Wu, Jing Cynthia; Xie, Yinxi - 2023

We build a tractable New Keynesian model to study four types of monetary and fiscal policy. We find that quantitative easing (QE), lump-sum fiscal transfers, and government spending have the same effects on the aggregate economy when fiscal policy is fully tax financed. Compared with these three...

Persistent link: https://www.econbiz.de/10014544425