Posts

• Linking Real Activity and Financial Markets: The Bonds, Equity, and Money (BEAM) Model

  Staff Working Paper 2006-42 Céline Gauthier, Fuchun Li

  The authors estimate a small monthly macroeconometric model (BEAM, for bonds, equity, and money) of the Canadian economy built around three cointegrating relationships linking financial and real variables over the 1975–2002 period.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Financial stability JEL Code(s): C, C5, E, E4

• An Optimized Monetary Policy Rule for ToTEM

  Staff Working Paper 2006-41 Jean-Philippe Cayen, Amy Corbett, Patrick Perrier

  The authors propose a monetary policy rule for the Terms-of-Trade Economic Model (ToTEM), the Bank of Canada's new projection and policy-analysis model for the Canadian economy.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E5, E52

• Education and Self-Employment: Changes in Earnings and Wealth Inequality

  Staff Working Paper 2006-40 Yaz Terajima

  The author quantitatively studies the interaction between education and occupation choices and its implication for the relationship between the changes in earnings inequality and the changes in wealth inequality in the United States over the 1983–2001 period.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Labour markets JEL Code(s): D, D3, D31, I, I2, I21, J, J2, J23
• November 1, 2006

  Renewal of the Inflation-Control Target (November 2006)

  Commentary and technical data relating to the 2006 target renewal.

  Content Type(s): Background materials Topic(s): Inflation and prices, Monetary policy
• October 25, 2006

  Governor Dodge Looks at the Global Economy and the Implications for Ontario

  Media Relations Ottawa, Ontario

  In a speech by video conference to the Ontario Economic Leadership Summit in Niagara-on-the-Lake, Governor Dodge reviewed the Bank's projections contained in the Monetary Policy Report, published last week.

  Content Type(s): Press, Press releases
• October 25, 2006

  Opening Statement before the Senate Banking, Trade and Commerce Committee

  Opening statement David Dodge Senate Banking, Trade and Commerce Committee

  Things have changed somewhat since then. While global economic growth is expected to be a little higher than anticipated last spring, a weaker near-term outlook for the U.S. economy has curbed the near-term prospects for Canadian exports and growth.

  Content Type(s): Press, Speeches and appearances, Opening statements
• October 25, 2006

  The Global Economic Landscape and the Implications for Ontario

  Remarks David Dodge 2006 Ontario Economic Leadership Summit Niagara-on-the-Lake, Ontario

  How can we develop human capital to its fullest potential, and retain that capital? How can we foster research, innovation, and commercialization in this province? How can we improve Ontario's competitiveness in the global marketplace?

  Content Type(s): Press, Speeches and appearances, Remarks
• October 22, 2006

  ToTEM: The Bank of Canada's New Projection and Policy-Analysis Model

  Bank of Canada Review - Autumn 2006 Paul Fenton, Stephen Murchison

  The Terms-of-Trade Economic Model, or ToTEM, replaced the Quarterly Projection Model (QPM) in December 2005 as the Bank's principal projection and policy-analysis model for the Canadian economy. Benefiting from advances in economic modelling and computer power, ToTEM builds on the strengths of QPM, allowing for optimizing behaviour on the part of firms and households, both in and out of steady state, in a multi-product environment. The authors explain the motivation behind the development of ToTEM, provide an overview of the model and its calibration, and present several simulations to illustrate its key properties, concluding with some indications of how the model is expected to evolve going forward.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Business fluctuations and cycles, Economic models
• October 22, 2006

  Bank of Canada Review - Autumn 2006

  

  Cover page

  The "pretended" Bank of Upper Canada — Kingston (1819-22)

  The note is part of the National Currency Collection of the Bank of Canada.
  Photography by Gord Carter

  Content Type(s): Publications, Bank of Canada Review
• October 20, 2006

  MUSE: The Bank of Canada's New Projection Model of the U.S. Economy

  Bank of Canada Review - Autumn 2006 Marc-André Gosselin, René Lalonde, Nicolas Parent

  Staff projections provided for the Bank of Canada's monetary policy decision process take into account the integration of Canada's very open economy within the global economy, as well as its close real and financial linkages with the United States. To provide inputs for this projection, the Bank has developed several models, including MUSE, NEUQ (the New European Quarterly Model), and BoC-GEM (Bank of Canada Global Economy Model), to analyze and forecast economic developments in the rest of the world. The authors focus on MUSE, the model currently used to describe interaction among the principal U.S. economic variables, including gross domestic product, inflation, interest rates, and the exchange rate. Brief descriptions are also provided of NEUQ and BoC-GEM.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Econometric and statistical methods, Economic models, International topics