Recent economic and financial developments

• Leverage, Balance Sheet Size and Wholesale Funding

  Staff Working Paper 2010-39 H. Evren Damar, Césaire Meh, Yaz Terajima

  Some evidence points to the procyclicality of leverage among financial institutions leading to aggregate volatility. This procyclicality occurs when financial institutions finance their assets with non-equity funding (i.e., debt financed asset expansions). Wholesale funding is an important source of market-based funding that allows some institutions to quickly adjust their leverage.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, Financial system regulation and policies, Recent economic and financial developments JEL Code(s): G, G2, G21, G28

• Relative Price Movements and Labour Productivity in Canada: A VAR Analysis

  Staff Discussion Paper 2010-5 Michael Dolega, David Dupuis, Lise Pichette

  In recent years, the Canadian economy has been affected by strong movements in relative prices brought about by the surging costs of energy and non-energy commodities, with significant implications for the terms of trade, the exchange rate, and the allocation of resources across Canadian sectors and regions.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Labour markets, Productivity, Recent economic and financial developments JEL Code(s): E, E2, E23, E24, O, O4, O47

• Prospects for Global Current Account Rebalancing

  Staff Discussion Paper 2010-4 Kimberly Beaton, Carlos De Resende, René Lalonde, Stephen Snudden

  The authors use the Bank of Canada's version of the Global Economy Model, a multi-country, multi-sector dynamic stochastic general-equilibrium model with an active banking system (the BoC-GEM-FIN), to study the evolution of global current account balances following the recent global financial crisis.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Balance of payments and components, Business fluctuations and cycles, International topics, Recent economic and financial developments JEL Code(s): E, E2, E21, F, F0, F01, F3, F32

• The Power of Many: Assessing the Economic Impact of the Global Fiscal Stimulus

  Staff Discussion Paper 2010-1 Carlos De Resende, René Lalonde, Stephen Snudden

  The Bank of Canada Global Economy Model (BoC-GEM) is used to examine the effect of various types of discretionary fiscal policies on different regions of the globe. The BoC-GEM is a microfounded dynamic stochastic general-equilibrium global model with six regions, multiple sectors, and international linkages.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Business fluctuations and cycles, Fiscal policy, International topics, Recent economic and financial developments JEL Code(s): E, E5, E52, E58, E6, E61, E63, F, F4, F42