Uncategorized

• Shift Contagion in Asset Markets

  Staff Working Paper 2003-5 Toni Gravelle, Maral Kichian, James Morley

  The authors develop a new methodology to investigate how crises cause the relationship between financial variables to change. Two possible sources of increased co-movement between markets during high-variance episodes are considered: larger common shocks operating through standard market linkages, and a structural change in the propagation of shocks between markets, called "shift contagion."

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial markets JEL Code(s): C, C3, C32, F, F4, F42, G, G1, G15

• Are Distorted Beliefs Too Good to be True?

  Staff Working Paper 2003-4 Miroslav Misina

  In a recent attempt to account for the equity-premium puzzle within a representative-agent model, Cecchetti, Lam, and Mark (2000) relax the assumption of rational expectations and in its place use the assumption of distorted beliefs. The author shows that the explanatory power of the distorted beliefs model is due to an inconsistency in the model and that an attempt to remove this inconsistency removes the model's explanatory power.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Financial markets JEL Code(s): D, D8, D84, G, G1, G12

• Money in the Bank (of Canada)

  Technical Report No. 93 David Longworth

  With the demise of monetary targeting over the past 20 years in many major countries, the question has arisen as to whether central banks should look at money at all when formulating and conducting monetary policy.

  Content Type(s): Staff research, Technical reports Topic(s): Monetary aggregates, Monetary policy transmission JEL Code(s): E, E5, E50, E51, E52
• January 30, 2003

  Annual Report 2002

  

  In the year just ended, the global economy faced a number of exceptional challenges, reflecting a wide range of economic, financial, and geopolitical risks and uncertainties. These included the fallout from the September 2001 terrorist attacks, corporate accounting scandals, stock market volatility, and developments in the Middle East. Despite this global backdrop, the Canadian economy outperformed virtually all other industrial economies, growing by about 3 1/4 per cent and creating 560,000 jobs, while inflation expectations remained well anchored to the Bank of Canada’s 2 per cent inflation-control target.

  Content Type(s): Publications, Annual Report
• January 29, 2003

  Monetary Policy: Meeting the Challenges of an Uncertain World

  Remarks David Dodge Speakers Forum Toronto, Ontario

  I'll discuss what's happening to prices in the economy and how Canada's macroeconomic policy framework protects it from the risks of persistent inflation or deflation. Finally, I will update our outlook for the Canadian economy.

  Content Type(s): Press, Speeches and appearances, Remarks
• January 23, 2003

  Release of Monetary Policy Report Update

  Opening statement David Dodge

  Core inflation has been higher than anticipated in recent months. This reflects not only a stronger-than-expected increase in premiums for auto and home insurance, but also some broadening of price pressures resulting from strong demand in the economy.

  Content Type(s): Press, Speeches and appearances, Opening statements
• January 23, 2003

  Monetary Policy Report Update – January 2003

  At the time of the October Monetary Policy Report, the Bank projected that core inflation would rise in the fourth quarter of 2002, reflecting a combination of one-off factors - including the rise in insurance premiums - and the “echo effect” from developments towards the end of 2001.

  Content Type(s): Publications, Monetary Policy Report
• January 21, 2003

  Bank of Canada keeps target for the overnight rate at 2 3/4 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is maintaining its target for the overnight rate at 2 3/4 per cent.

  Content Type(s): Press, Press releases
• January 13, 2003

  Senior Deputy Governor Malcolm Knight appointed new General Manager of the Bank for International Settlements

  Media Relations Ottawa, Ontario

  The Board of Directors of the Bank for International Settlements (BIS), based in Switzerland, announced today the appointment of Malcolm Knight as the new General Manager of the BIS, beginning in April 2003.

  Content Type(s): Press, Press releases
• January 13, 2003

  Process for Selecting a New Senior Deputy Governor

  The Board of Directors of the Bank of Canada has initiated a process to find a replacement for Senior Deputy Governor Malcolm Knight, who is leaving the Bank to take up an appointment as General Manager of the Bank for International Settlements in Switzerland at the beginning of April.