Posts

• A Model of Costly Capital Reallocation and Aggregate Productivity

  Staff Working Paper 2008-38 Shutao Cao

  The author studies the effects of capital reallocation (the flow of productive capital across firms and establishments mainly through changes in ownership) on aggregate labour productivity. Capital reallocation is an important activity in the United States: on average, its total value is 3–4 per cent of U.S. GDP.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Productivity JEL Code(s): E, E2, E22, L, L1, L16

• Adopting Price-Level Targeting under Imperfect Credibility: An Update

  Staff Working Paper 2008-37 Oleksiy Kryvtsov, Malik Shukayev, Alexander Ueberfeldt

  This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields higher welfare than inflation targeting.

  Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52
• October 3, 2008

  Bank of Canada Announces Term PRA Transactions

  Since 19 September 2008, the Bank of Canada has extended $8 billion in three operations to provide liquidity to Canadian term lending markets.

  Content Type(s): Press, Market notices

• The Role of Bank Capital in the Propagation of Shocks

  Staff Working Paper 2008-36 Césaire Meh, Kevin Moran

  Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the propagation of shocks.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Financial institutions, Financial system regulation and policies, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, G, G2, G21
• October 2, 2008

  Results of the 2 October 2008 Sale of Treasury Bills for Balance Sheet Management Purposes

  Results of the 2 October 2008 Sale of Treasury Bills.

  Content Type(s): Press, Market notices

• Globalization and Inflation: The Role of China

  Staff Working Paper 2008-35 Denise Côté, Carlos De Resende

  In this paper, we develop a theoretical model which identifies four channels–import prices, competition with domestic suppliers and workers, and commodity prices–through which price- and wage-setting conditions in country j may affect inflation in country i.

  Content Type(s): Staff research, Staff working papers Topic(s): International topics JEL Code(s): E, E2, E22, E3, E32, E4, E44
• October 1, 2008

  Results of the 1 October 2008 Term PRA Transaction

  Results of today's term PRA operations.

  Content Type(s): Press, Market notices