Publications

• April 24, 2008

  Monetary Policy Report – April 2008

  

  Growth in the global economy began to slow in the fourth quarter of 2007 and the first quarter of 2008. This reflected the effects of the slowdown in the U.S. economy and ongoing dislocations in global financial markets.

  Content Type(s): Publications, Monetary Policy Report
• April 14, 2008

  Business Outlook Survey - Spring 2008

  In the spring survey, a number of indicators eased from their level in the winter survey. While the weaker U.S. economic situation is weighing more heavily on the outlook, firms are not expecting a marked change in the pace of business activity.

  Content Type(s): Publications, Business Outlook Survey
• March 18, 2008

  Canada's Experience with a Flexible Exchange Rate in the 1950s: Valuable Lessons Learned

  Bank of Canada Review - Spring 2008 Lawrence L. Schembri

  Schembri studies Canada's post-World War II experience in introducing a floating exchange rate, including its effects on the Canadian economy and its influence on the development of macroeconomic theory. In particular, Canada's flexible exchange rate and high degree of capital mobility with the United States provided an unprecedented experiment for macroeconomic policy. The successes and difficulties encountered by Canadian authorities in managing monetary and fiscal policy under this regime drew the interest of researchers at the International Monetary Fund and elsewhere and had a significant impact on the development of the Mundell-Fleming model, the path-breaking innovation in modern open-economy macroeconomics.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Exchange rate regimes, Monetary policy framework
• March 17, 2008

  Price Discovery Across Geographic Locations in the Foreign Exchange Market

  Bank of Canada Review - Spring 2008 Chris D'Souza

  The ongoing process of price discovery in foreign exchange markets provides valuable information to certain market participants. Recent empirical findings suggest that aggregate measures of order flow convey information about the fundamental value of the exchange rate. Using a market microstructure approach, D'Souza reports on a two-year study of completed transactions within the Canadian and Australian exchange rate markets to examine the relationship between exchange rate returns and trades initiated in different locations. Based on the information content of the trades, he finds that geographic location and hours of operation are two of the factors driving informed interdealer trading.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rates, Financial markets, Market structure and pricing
• March 16, 2008

  Developing a Framework to Assess Financial Stability: Conference Highlights and Lessons

  Bank of Canada Review - Spring 2008 Olivier de Bandt, Céline Gauthier, Pierre St-Amant

  Central banks are still defining their approach to financial stability and are at an early stage in the development of useful models. The Bank of Canada's 2007 economic conference was organized to stimulate progress in the development of financial-stability frameworks. Among the highlights reported here are the discussions centred around three proposed frameworks: a contingent-claims-analysis framework, a semi-structural framework, and structural financial-stability models. Participants also reported on their experiences with stress-testing under the International Monetary Fund's Financial Sector Assessment Program and discussed the implications for financial stability of linkages among payment, clearing, and settlement systems.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial stability, Financial system regulation and policies, Payment clearing and settlement systems
• March 16, 2008

  Bank of Canada Review - Spring 2008

  

  Cover Page

  Canada's First Coinage

  Photography by Gord Carter, Ottawa.

  Content Type(s): Publications, Bank of Canada Review
• January 30, 2008

  Annual Report 2007

  

  The year 2007 was marked by sharply increased volatility in financial and foreign exchange markets, and a widening of credit spreads. Despite financial market turbulence, the Canadian economy continued to expand, and inflation remained close to our target of 2 per cent. In this, my final Annual Report message, I begin by reviewing the economic and financial developments and challenges of the past year. I then highlight seven important ongoing challenges faced by Canada and the Bank during my seven years as Governor.

  Content Type(s): Publications, Annual Report
• January 24, 2008

  Monetary Policy Report Update – January 2008

  The Canadian economy grew broadly in line with the Bank’s expectations in the second half of 2007.

  Content Type(s): Publications, Monetary Policy Report
• January 15, 2008

  Bank of Canada Review - Winter 2007-2008

  

  Cover page

  Roman Antoninianus

  The coins form part of the National Currency Collection of the Bank of Canada.
  Photography by Gord Carter, Ottawa.

  Content Type(s): Publications, Bank of Canada Review
• January 14, 2008

  Business Outlook Survey - Winter 2007-08

  Overall, firms remain positive about the outlook, with the results of the winter survey showing little change from those of the autumn survey. Nonetheless, firms reported more uncertainty in light of recent developments, most notably the volatility in the value of the Canadian dollar.

  Content Type(s): Publications, Business Outlook Survey