Staff discussion papers

• The Global Effects of U.S. Fiscal Policy

  Staff Discussion Paper 2008-8 Kimberly Beaton

  The author examines the global impact of U.S. fiscal policy using the Bank of Canada's Global Economy Model (Lalonde and Muir 2007). In particular, she examines the global macroeconomic implications of the expiration of major tax cuts in the United States and of expected increases in U.S. entitlement program expenditures.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Fiscal policy, International topics, Regional economic developments JEL Code(s): H, H0, H2, H3

• The Effects of a Disruption in CDSX Settlement on Activity in the LVTS: A Simulation Study

  Staff Discussion Paper 2008-7 Lana Embree, Kirby Millar

  The Large Value Transfer System (LVTS) for settling large payments, and CDSX for settling debt and equity trades, are two of the main settlement systems in Canada. They are closely linked; for example, at the end of the day the final CDSX payment obligations must settle on the Bank of Canada's books, with payments made […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, Payment clearing and settlement systems JEL Code(s): E, E5, E58, G, G2, G21

• Reforming the IMF: Lessons from Modern Central Banking

  Staff Discussion Paper 2008-6 Philipp Maier, Eric Santor

  The authors examine the institutional and governance framework of modern central banks to determine whether there are lessons that can be applied to the International Monetary Fund's (IMF's) institutional framework. Such a comparison is appealing for two reasons. First, both central banks and the IMF carry out tasks that can be described as "delegated responsibilities." […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): International topics JEL Code(s): F, F3

• China's Exchange Rate Policy: A Survey of the Literature

  Staff Discussion Paper 2008-5 Robert Lafrance

  China's integration into the world economy has benefited its people by reducing poverty and raising living standards, and it has benefited the industrialized world by producing manufactured goods at lower cost. It has also raised geopolitical concerns as China's power grows, economic concerns as the manufacturing base in many industrialized countries erodes, and polemics as proposals of protectionist measures to counter China's export growth are put forward.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rate regimes JEL Code(s): F, F3, F33, F36

• Sterilized Intervention in Emerging-Market Economies: Trends, Costs, and Risks

  Staff Discussion Paper 2008-4 Robert Lavigne

  The author examines recent trends in sterilized intervention among emerging-market economies, to determine the size and extent of this policy in relation to earlier periods of heavy reserve accumulation. He then analyzes whether the domestic costs and risks of substantial and prolonged sterilization are beginning to manifest themselves.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rate regimes, Financial stability, International topics JEL Code(s): E, E5, E52, F, F3, F31, O, O2, O24

• Understanding Productivity: A Review of Recent Technical Research

  Staff Discussion Paper 2008-3 Richard Dion, Robert Fay

  The authors provide an extensive review of the rapidly expanding research on productivity, both at the macro and micro levels. They focus primarily on papers written about Canada, but also draw on selected studies from other countries, especially the United States, where such work sheds important light on particular aspects of productivity growth. The authors […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Productivity JEL Code(s): D, D2, D24, O, O3, O31, O4, O40, O47

• The Carry Trade, Portfolio Diversification, and the Adjustment of the Japanese Yen

  Staff Discussion Paper 2008-2 Corinne Luu

  In this paper, the author considers whether fundamentals or other factors can explain the yen's ongoing weakness. In particular, the importance of capital outflows due to the carry trade and longer-term portfolio investment outflows, which may be delaying the adjustment of the yen, are investigated. A simple portfolio model is developed, composed of a speculative […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rates, International topics, Recent economic and financial developments JEL Code(s): F, F2, F21, F3, F31, F32, G, G1, G11

• An Overview of Carbon Markets and Emissions Trading: Lessons for Canada

  Staff Discussion Paper 2008-1 Michael R. King

  The author provides an overview of carbon markets and explains how emissions trading can be important in encouraging the reduction of CO2 emissions in an efficient manner. He describes the key steps in establishing a cap-and-trade system, and reviews the European experiences with emissions trading. He highlights the lessons learned from the EU Emissions Trading […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): International topics, Market structure and pricing JEL Code(s): D, D4, N, N5, N50, Q, Q2, Q21