Uncategorized

• January 22, 2004

  Release of the Monetary Policy Report Update

  Opening statement David Dodge

  Three developments have led us to modify our outlook for economic growth and inflation in Canada, since our October Monetary Policy Report. These include: stronger-than-expected world economic activity, the continued sharp depreciation of the U.S. dollar against major world currencies (including the Canadian dollar), and a somewhat larger output gap in Canada at the end of 2003.

  Content Type(s): Press, Speeches and appearances, Opening statements
• January 20, 2004

  Bank of Canada lowers target for the overnight rate by 1/4 percentage point to 2 1/2 per cent

  Media Relations Ottawa, Ontario

  Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 2 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2 3/4 per cent.

  Content Type(s): Press, Press releases

• The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data

  Staff Working Paper 2004-1 Danny Leung

  A basic neoclassical model of production is often used to assess the contribution of investment to output growth. In the model, investment raises the capital stock and output growth increases in proportion to the growth in capital.

  Content Type(s): Staff research, Staff working papers Topic(s): Productivity JEL Code(s): O, O3, O31, O4, O49
• December 31, 2003

  Summary of Government of Canada - Outstanding as at 31 December 2003

  Content Type(s): Publications, Historical: Securities and loans
• December 18, 2003

  Debt Strategy 2004/05 Consultation Document

  The purpose of the consultations is to obtain the views of market participants on issues relating to the design and operation of the Government of Canada domestic debt programs for fiscal year 2004/05 and beyond.
• December 18, 2003

  Debt Strategy Consultations 2004/05 - Views Sought on Issues Relating to the Design and Operation of Government Domestic Debt Programs in 2004/05 and Beyond

  A consultation document on issues relating to the design and operation of the government's domestic debt programs for fiscal year 2004/05 and beyond, prepared jointly by the Department of Finance and the Bank of Canada, is being made public today.

  Content Type(s): Press, Market notices

• Common Trends and Common Cycles in Canadian Sectoral Output

  Staff Working Paper 2003-44 Francisco Barillas, Christoph Schleicher

  The authors examine evidence of long- and short-run co-movement in Canadian sectoral output data. Their framework builds on a vector-error-correction representation that allows them to test for and compute full-information maximum-likelihood estimates of models with codependent cycle restrictions.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods JEL Code(s): C, C1, C15, C2, C22, C3, C32, E, E3, E32
• December 8, 2003

  Past Adjustments and Future Trends in the Canadian Economy

  Remarks David Dodge London Chamber of Commerce London, Ontario

  When giving a speech near the end of a year, it is common practice to look back over the past 12 months, consider what we have learned from the events and experiences of the year, and think a bit about what might lie ahead. I became Governor of the Bank of Canada in 2001 and, since that time, I have found myself saying at the end of each year, "Well, we won't see another year like that again."

  Content Type(s): Press, Speeches and appearances, Remarks

• Why Does Private Consumption Rise After a Government Spending Shock?

  Staff Working Paper 2003-43 Hafedh Bouakez, Nooman Rebei

  Recent empirical evidence suggests that private consumption is crowded-in by government spending. This outcome violates existing macroeconomic theory, according to which the negative wealth effect brought about by a rise in public expenditure should decrease consumption.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Fiscal policy JEL Code(s): E, E3, E32, E6, E62

• A Structural VAR Approach to the Intertemporal Model of the Current Account

  Staff Working Paper 2003-42 Takashi Kano

  The intertemporal current account approach predicts that the current account of a small open economy is independent of global shocks, and that responses of the current account to country-specific shocks depend on the persistence of the shocks. The author shows that these predictions impose cross-equation restrictions (CERS) on a structural vector autoregression (SVAR).

  Content Type(s): Staff research, Staff working papers Topic(s): Balance of payments and components, Monetary aggregates JEL Code(s): F, F3, F32, F4, F41