Staff Research
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30 September 2015 Research Update - September 2015
This monthly 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. -
On the Nexus of Monetary Policy and Financial Stability: Recent Developments and Research
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks need to be more fully specified (Côté 2014). -
17 September 2015 Financial Markets Presenters for 2015-2016
Topics covered include Asset Pricing, Market Microstructure, Macro-Finance, Monetary Policy and Sovereign Debt. -
Public Policy Objectives and the Next Generation of CPA Systems: An Analytical Framework
The payments landscape in Canada is rapidly changing and will continue to evolve, fuelled by strong and persistent drivers. In Canada, the Canadian Payments Association (CPA) is on a path to modernize Canada’s core payment systems. -
The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model
This paper considers a real business cycle model with labor search frictions where two types of incentive pay are explicitly introduced following the insights from the micro literature on performance pay (e.g. Lazear, 1986). -
Heterogeneity in the Dynamic Effects of Uncertainty on Investment
How does aggregate profit uncertainty influence investment activity at the firm level? We propose a parsimonious adaptation of a factor-autoregressive conditional heteroscedasticity model to exploit information in a subindustry sales panel for an efficient and tractable estimation of aggregate volatility.