Posts
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November 2, 1999
The Challenges for Canadian Monetary Policy in the Year 2000
Monetary policy actions take a relatively long time to affect the economy and inflation—anywhere between 12 to 24 months. Because of this, central banks must always look ahead and must put in place today the monetary conditions that are needed to help keep the economy on a sustainable path down the road. By 'sustainable' I mean a situation where economic growth and job creation are not at risk from rising inflation. -
Yield Curve Modelling at the Bank of Canada
The primary objective of this paper is to produce a framework that could be used to construct a historical data base of zero-coupon and forward yield curves estimated from Government of Canada securities' prices. -
May 27, 2005
70 Years of Central Banking in Canada
The Bank opened its doors on 11 March 1935, at the height of the Great Depression, and immediately faced enormous challenges. In meeting those challenges, the new Bank of Canada drew on the experience of other, established central banks. It received valuable guidance in functions such as the issuance of bank notes, managing foreign exchange reserves, and promoting financial stability. -
Heterogeneity in the Dynamic Effects of Uncertainty on Investment
How does aggregate profit uncertainty influence investment activity at the firm level? We propose a parsimonious adaptation of a factor-autoregressive conditional heteroscedasticity model to exploit information in a subindustry sales panel for an efficient and tractable estimation of aggregate volatility. -
Reconsidering Cointegration in International Finance: Three Case Studies of Size Distortion in Finite Samples
This paper reconsiders several recently published but controversial results about the behaviour of exchange rates. In particular, it explores finite-sample problems in the application of cointegration tests and shows how these may have affected the conclusions of recent research. -
Has Exchange Rate Pass-Through Really Declined in Canada?
Several empirical studies suggest that exchange rate pass-through has declined in recent years in industrialized countries. -
The Ex-Ante Versus Ex-Post Effect of Public Guarantees
In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks’ credit fundamentals. -
Macroprudential Regulation and Systemic Capital Requirements
In the aftermath of the financial crisis, there is interest in reforming bank regulation such that capital requirements are more closely linked to a bank's contribution to the overall risk of the financial system. In our paper we compare alternative mechanisms for allocating the overall risk of a banking system to its member banks. -
April 2, 2012
Exporting in a Post-Crisis World
Governor Mark Carney discusses why Canada’s exports are lagging and what can be done to respond to the underlying challenges.