Posts

• Canada's Pioneering Experience with a Flexible Exchange Rate in the 1950s: (Hard) Lessons Learned for Monetary Policy in a Small Open Economy

  Staff Working Paper 2007-45 Michael Bordo, Ali Dib, Lawrence L. Schembri

  This paper revisits Canada's pioneering experience with floating exchange rate over the period 1950–1962. It examines whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open economy model of the Canadian economy.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Exchange rates JEL Code(s): E, E3, E32, E37, F, F3, F31, F32, N, N1

• Cyclical Behavior of Debt and Equity Using a Panel of Canadian Firms

  Staff Working Paper 2007-44 Francisco Covas, Wouter den Haan

  We document the cyclical behavior of debt, equity, and retained earnings for different firm categories using firm-level Canadian data.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles JEL Code(s): E, E3, E32, G, G3, G32

• Price Discovery in Canadian and U.S. 10-Year Government Bond Markets

  Staff Working Paper 2007-43 Bryan Campbell, Scott Hendry

  This paper presents some new results on the price discovery process in both the Canadian and U.S. 10-year Government bond markets using high-frequency data not previously analyzed. Using techniques introduced by Hasbrouck (1995) and Gonzalo-Granger (1995), we look at the relative information content of cash and futures prices in the market for Canadian Government bonds using futures market data from the Montreal Exchange and OTC cash market data reflecting the inter-dealer market covered by CanPx.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): G, G1, G12, G13, G14

• Trend Inflation, Wage and Price Rigidities, and Welfare

  Staff Working Paper 2007-42 Robert Amano, Kevin Moran, Stephen Murchison, Andrew Rennison

  This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E0, E5
• July 25, 2007

  Bank of Canada releases 2008 schedule of dates for its policy interest rate announcements

  Media Relations Ottawa, Ontario

  The Bank of Canada today released its 2008 schedule of eight dates for announcing decisions on its key policy interest rate, and confirmed the announcement dates for the remainder of this year.

  Content Type(s): Press, Press releases
• July 18, 2007

  Update on Selection Process for Governor of the Bank of Canada Released by the Special Committee of the Bank's Board of Directors

  In accordance with the Bank of Canada Act, the Governor of the Bank of Canada is appointed by the independent directors with the approval of the Governor in Council (federal Cabinet). Following an announcement on 25 April 2007 that the current Governor, Mr. David Dodge, would not be seeking reappointment at the end of his seven year mandate on 31 January 2008, the Bank's Board of Directors initiated a process to find a replacement.

  Content Type(s): Press, Announcements

• Asset-Price Misalignments and Monetary Policy: How Flexible Should Inflation-Targeting Regimes Be?

  Staff Discussion Paper 2007-6 Jack Selody, Carolyn A. Wilkins

  The authors analyze the extent to which inflation-targeting frameworks should incorporate flexibility in order to respond to asset-price misalignments and other atypical events. They examine the costs and benefits of adding flexibility to the Bank's current inflation-targeting framework, and conclude that maintaining low and stable consumer price inflation is the best contribution that monetary policy […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation targets, Monetary policy framework JEL Code(s): E, E5, E6
• July 12, 2007

  Release of the Monetary Policy Report Update

  Opening statement David Dodge

  Economic growth and inflation in Canada in the first half of this year have been stronger than was expected in the April Monetary Policy Report. The Bank judges that the economy is now operating further above its production potential than was projected in April.

  Content Type(s): Press, Speeches and appearances, Opening statements
• July 12, 2007

  Monetary Policy Report Update – July 2007

  Economic growth and inflation in Canada in the first half of this year have been stronger than expected in the April Monetary Policy Report.

  Content Type(s): Publications, Monetary Policy Report
• July 12, 2007

  Bank of Canada releases Monetary Policy Report Update

  Media Relations Ottawa, Ontario

  Economic growth and inflation in Canada in the first half of this year have been stronger than was expected in the April Monetary Policy Report.

  Content Type(s): Press, Press releases