Government of Canada

About: Government of Canada is a government organization based out in Ottawa, Ontario, Canada. It is known for research contribution in the topics: Monetary policy & Productivity. The organization has 796 authors who have published 886 publications receiving 21366 citations. The organization is also known as: federal government of Canada & Her Majesty's Government.

Shallow or Deep? Detecting Anomalous Flows in the Canadian Automated Clearing and Settlement System using an Autoencoder

Abstract: Financial market infrastructures and their participants play a crucial role in the economy. Financial or operational challenges faced by one participant can have contagion effects and pose risks to the broader financial system. Our paper applies (deep) neural networks (autoencoder) to detect anomalous flows from payments data in the Canadian Automated Clearing and Settlement System (ACSS) similar to Triepels et al. (2018). We evaluate several neural network architecture setups based on the size and number of hidden layers, as well as differing activation functions dependent on how the input data was normalized. As the Canadian financial system has not faced bank runs in recent memory, we train the models on “normal” data and evaluate out-of-sample using test data based on historical anomalies as well as simulated bank runs. Our out-of-sample simulations demonstrate the autoencoder’s performance in different scenarios, and results suggest that the autoencoder detects anomalous payment flows reasonably well. Our work highlights the challenges and trade-offs in employing a workhorse deep-learning model in an operational context and raises policy questions around how such outlier signals can be used by the system operator in complying with the prominent payment systems guidelines and by financial stability experts in assessing the impact on the financial system of a financial institution that shows extreme behaviour.

On The Use of Machine Learning and Polarimetry For Estimating Soil Moisture From Radarsat Imagery Over Italian And Canadian Test Sites

Abstract: This research aimed at exploiting the joint use of machine learning and polarimetry for improving the retrieval of surface soil moisture (SMC) from SAR acquisitions at C- and X-band.The study was conducted on an alpine test area in Italy and two agricultural areas in Canada, for which series of Radarsat-2 (RS2) and COSMO-SkyMed (CSK) images were available along with direct measurements of SMC from in-situ stations. The analysis confirmed the sensitivity of SAR backscattering (σ°) from both sensors to the SMC variations, with similar correlations (R ≃0.5). The comparison of SMC with the Compact Polarimetric (CP) parameters, computed from the RS2 acquisitions by Radarsat Constellation Mission (RCM) data simulator pointed out that the right and left polarized signals and the Shannon entropy intensity also have some sensitivity to SMC variations, with R ≃0.4 for all the three parameters.Based on these results, two different machine learning (ML) algorithms, namely Support Vector Regression (SVR) and Artificial Neural Network (ANN) have been implemented and tested on the available data. On the South Tyrol test area, both SVR and ANN tested with different combinations of RS2 and CSK data were able to retrieve SMC with a RMSE between 4% and 6% of SMC and R between 0.78 and 0.88, depending on the combination of inputs. The ANN algorithm based on CP data was tested on the Canada areas, being able to estimate SMC with a RMSE between 2% and 5% of SMC and R between 0.85 and 0.96.

Empowering Librarians in the Provision of Data Services in Canada: A Case Study of the DLI Survival Guide

Abstract: While some Canadian universities have a long history in the provision of data services, that was not the norm in Canada, especially in small universities and colleges. To maximize the use of data by students and researchers in academia, it was evident that increased education, resources, and tools were required to support those delivering data services on their campuses. To this end, the Data Liberation Initiative (DLI) Survival Guide was designed as a comprehensive reference tool, which complements an established regional training curriculum, whereby enabling librarians to effectively fulfill their role as a DLI Contact in their academic institutions. This case study will examine the history, current state, and recommended future direction of the Survival Guide. This article will also examine the challenges in understanding the drivers shaping academic service delivery and the ways in which the guide has evolved to remain current to the needs of the Canadian data community.

Transitioning from Blanket to Limited Deposit Guarantees in Asia: Issues for Thailand

Abstract: In the aftermath of the 1997 crisis, many Asian countries including Thailand are examining options for transitioning from blanket deposit guarantees to more limited and explicit deposit protection arrangements. Though the need to reduce blanket guarantees and their associated costs is well understood, it is critical for Thailand that this transitioning process be effectively managed and that a well designed explicit DIS be introduced. The full implementation of a DIS should only be undertaken when the banking system returns to normalcy and the financial and economic environment is conducive. Otherwise, transitioning could be a potentially dangerous proposition leading to increased bank fragility, 'capital flight' and possibly 'flight from the currency' and a fertile ground for moral hazard and other agency problems. The key questions are how to manage the transition process in a timely, orderly and constructive manner and how to design an incentive compatible DIS for all bank stakeholders. Transitioning to a DIS should be seen as an integral component of a country's overall financial sector reform strategy. Transitioning is fundamentally a dynamic, trust building, process-oriented management problem as inferred by Chaipravat and Hoontrakul [2001]. It is critical also when designing a DIS to effectively balance the dual conflicting goals of (1) protecting small, less financially sophisticated depositors and contributing to financial stability and (2) minimizing bank incentives to take excessive risk. In this paper, after taking into account Thailand's unique banking system structure - highly concentrated in both banks and large depositors -an innovative two-tier hybrid DIS model is proposed. A publicly administered compulsory system would provide protection for low coverage level bank deposits (i.e. similar to an FDIC, CDIC approach) and a private/public system akin to that used in Germany would provide additional protection for high coverage level bank deposits. Some rules-based check lists, policy recommendations and implication issues are presented.

Monetary Shocks in the G-6 Countries: Is There a Puzzle?

Abstract: Note: The following is a description of the paper and not the abstract as published in the print journal. In this paper new evidence on the transmission of monetary policy shocks across the G-6 countries is presented. Monetary shocks are identified as those that have a proportionate effect on the stock of money and the price level but with no long-run impact on output or the interest rate. The impulse response functions generally suggest that the monetary shock identified can be interpreted as a monetary policy shock. An expansionary shock leads to a rise in the stock of money, a short-run fall in the interest rate, a temporary rise in output, a rise in the price level, and a depreciation of the domestic currency. These results suggest that a simple identification technique can work well in international data. In general, the results of this study support the view that the stock of money has an active role in the transmission of monetary policy and suggest that monetary policy has a limited influence on real variables, such as real output.