F36 - Financial Aspects of Economic Integration

• The Propagation of U.S. Shocks to Canada: Understanding the Role of Real-Financial Linkages

  Staff Working Paper 2010-40 Kimberly Beaton, René Lalonde, Stephen Snudden

  This paper examines the transmission of U.S. real and financial shocks to Canada and, in particular, the role of financial frictions in affecting the transmission of these shocks. These questions are addressed within the Bank of Canada's Global Economy Model (de Resende et al. forthcoming), a dynamic stochastic general-equilibrium model with an active banking sector and a detailed role for financial frictions.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, International topics JEL Code(s): E, E2, E21, E27, E3, E32, F, F3, F36, F4, F40