Publications

• May 22, 2004

  Exchange Rate Pass-Through in Industrialized Countries

  Bank of Canada Review - Spring 2004 Jeannine Bailliu, Hafedh Bouakez

  Economists' long-standing interest in the degree to which exchange rate movements are reflected in prices was rekindled in the 1970s by a combination of rising inflation and the adoption of more flexible exchange rate regimes in many industrialized countries. Specifically, there were concerns that a large currency depreciation could degenerate into an inflationary spiral. Such fears were curtailed in the 1980s and early 1990s as industrialized countries began to reduce and stabilize their inflation rates. The low-inflation period most industrialized countries entered approximately a decade ago coincided with significant exchange rate depreciations that had much smaller effects on consumer prices than expected. This led to a belief that the extent to which exchange rate movements are passed through to consumer prices has declined. In this article, the authors examine why pass-through could be incomplete and review empirical estimates to determine whether pass-through has indeed declined, suggesting possible reasons for this decline and discussing the implications for monetary policy.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rates, Inflation and prices, Monetary policy framework
• May 21, 2004

  Are Wealth Effects Important for Canada?

  Bank of Canada Review - Spring 2004 Lise Pichette

  Some analysts believe that a sharp rise in equity values was an important factor in the strong consumer spending between 1995 and 2000. Empirical evidence suggests, however, that consumer spending responds more to changes in housing wealth than it does to equity wealth.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Domestic demand and components
• May 13, 2004

  Business Outlook Survey - Spring 2004

  Businesses’ expectations for the pace of economic activity over the next 12 months remain positive, although somewhat less so than in the winter survey.

  Supplemental questions on the appreciation of the Canadian dollar - April 2004

  Supplemental questions on the appreciation of the Canadian dollar - February 2004

  Content Type(s): Publications, Business Outlook Survey
• April 15, 2004

  Monetary Policy Report – April 2004

  The Canadian economy continues to adjust to developments in the global economy.

  Content Type(s): Publications, Monetary Policy Report
• January 30, 2004

  Annual Report 2003

  

  At the Bank of Canada, we have worked hard over the past several years to define our goals and our methods for achieving them. We have continued to strengthen our monetary policy framework, and we have established priorities in all areas of our operations to help us meet our strategic objectives. In 2002, the Bank set out a medium-term plan for the period 2003–05. The plan’s clearly defined policy frameworks and priorities were critical in guiding our analysis and our decisions in 2003, a year in which Canadians across the country were affected by a number of severe and unanticipated events.

  Content Type(s): Publications, Annual Report
• January 23, 2004

  Bank of Canada Review - Winter 2003-2004

  

  Cover page

  Brass Cash Register, 1910

  The register is part of the National Currency Collection, Bank of Canada.

  Photographed by Gord Carter, Ottawa.

  Content Type(s): Publications, Bank of Canada Review
• January 22, 2004

  Monetary Policy Report Update – January 2004

  Since the October Monetary Policy Report, three developments have led the Bank of Canada to modify its outlook for economic growth and inflation in Canada.

  Content Type(s): Publications, Monetary Policy Report
• December 31, 2003

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

  Content Type(s): Publications, Historical: Securities and loans
• December 23, 2003

  The Comparative Growth of Goods and Services Prices

  Bank of Canada Review - Winter 2003-2004 Edith Gagnon, Patrick Sabourin, Sébastien Lavoie

  For several decades, the prices of services have been rising more rapidly than the prices of goods in Canada and the other major industrialized countries. In 2002, this gap between the growth rates of these two components of the consumer price index (CPI) widened considerably, leading researchers to ask if this was the beginning of a trend. Analysis reveals, however, that the gap is based on short-term dynamics and that it appears to be independent of the trend in the development of the overall price level. Evidence also shows that the gap is eventually reabsorbed. The authors examine a number of potential causes for the prices of services to rise faster than those of goods. These include the more rapid pace of productivity growth in the goods sector, the greater openness of goods to foreign trade, and stronger growth in the demand for services.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation and prices, International topics, Productivity
• December 23, 2003

  Financial System Review - December 2003

  

  This section of the Financial System Review examines the recent performance of the Canadian financial system and the factors, both domestic and international, that are influencing it.

  Content Type(s): Publications, Financial Stability Report