E - Macroeconomics and Monetary Economics

• Financial Conditions Indexes for Canada

  Staff Working Paper 2004-22 Céline Gauthier, Christopher Graham, Ying Liu

  The authors construct three financial conditions indexes (FCIs) for Canada based on three approaches: an IS-curve-based model, generalized impulse-response functions, and factor analysis.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary and financial indicators, Monetary conditions index JEL Code(s): E, E4, E44, E5, E52

• Exchange Rate Pass-Through and the Inflation Environment in Industrialized Countries: An Empirical Investigation

  Staff Working Paper 2004-21 Jeannine Bailliu, Eiji Fujii

  This paper investigates the question of whether a transition to a low-inflation environment, induced by a shift in monetary policy, results in a decline in the degree of pass-through of exchange rate movements to consumer prices.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Inflation and prices, International topics JEL Code(s): E, E3, E31, E4, E42, F, F3, F31

• When Bad Things Happen to Good Banks: Contagious Bank Runs and Currency Crises

  Staff Working Paper 2004-18 Raphael Solomon

  The author develops a twin crisis model featuring multiple banks.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial institutions JEL Code(s): E, E5, E58, F, F3, F30, G, G2, G21

• The Bank of Canada's Business Outlook Survey: An Assessment

  Staff Working Paper 2004-15 Monica Martin, Cristiano Papile

  Since the autumn of 1997, the Bank of Canada's regional offices (located in Halifax, Montréal, Toronto, Calgary, and Vancouver) have conducted consultations with businesses across Canada on a quarterly basis. These consultations are now referred to as the Business Outlook Survey (BOS).

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Domestic demand and components JEL Code(s): E, E3, E32, E6, E66

• Estimating New Keynesian Phillips Curves Using Exact Methods

  Staff Working Paper 2004-11 Lynda Khalaf, Maral Kichian

  The authors use simple new finite-sample methods to test the empirical relevance of the New Keynesian Phillips curve (NKPC) equation.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Inflation and prices JEL Code(s): C, C1, C13, C5, C52, E, E3, E31

• Estimating Policy-Neutral Interest Rates for Canada Using a Dynamic Stochastic General-Equilibrium Framework

  Staff Working Paper 2004-9 Jean-Paul Lam, Greg Tkacz

  In an era when the primary policy instrument is the level of the short-term interest rate, a comparison of that rate with some equilibrium rate can be a useful guide for policy and a convenient method to measure the stance of monetary policy.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates JEL Code(s): C, C3, C32, E, E3, E37

• The Demand for Money in a Stochastic Environment

  Staff Working Paper 2004-7 Joseph Atta-Mensah

  The author re-examines the demand-for-money theory in an intertemporal optimization model. The demand for real money balances is derived to be a function of real income and the rates of return of all financial assets traded in the economy.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary aggregates JEL Code(s): E, E4, E41, E5, E50, G, G1, G11

• Bank Capital, Agency Costs, and Monetary Policy

  Staff Working Paper 2004-6 Césaire Meh, Kevin Moran

  Evidence suggests that banks, like firms, face financial frictions when raising funds.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Financial institutions, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, G, G2, G21

• A Structural Small Open-Economy Model for Canada

  Staff Working Paper 2004-4 Stephen Murchison, Andrew Rennison, Zhenhua Zhu

  The authors develop a small open-economy dynamic stochastic general-equilibrium (DSGE) model in an attempt to understand the dynamic relationships in Canadian macroeconomic data.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Inflation and prices JEL Code(s): E, E2, E3, E5, E52

• Modélisation « PAC » du secteur extérieur de l'économie américaine

  Staff Working Paper 2004-3 Marc-André Gosselin, René Lalonde

  In this paper, the authors use polynomial adjustment cost (PAC) models to analyze and forecast the main components of the U.S. trade sector.

  Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Econometric and statistical methods, International topics JEL Code(s): C, C3, C32, E, E3, E37, F, F4, F47