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2399 result(s)

Optimum Currency Areas and Shock Asymmetry: A Comparison of Europe and the United States

Staff Working Paper 1994-1 Nick Chamie, Alain DeSerres, René Lalonde
Since the early 1980s, models based on economic fundamentals have been poor at explaining the movements in the exchange rate (Messe 1990). In response to this problem, Frankel and Froot (1988) developed a model that uses two approaches to forecast the exchange rate: the fundamentalist approach, which bases the forecast on economic fundamentals, and the chartist approach, which bases the forecast on the past behaviour of the exchange rate.
Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial markets JEL Code(s): C, C4, C40, G, G1, G12

The Role of House Prices in Regional Inflation Disparities

Technical Report No. 67 Dinah Maclean
Theoretically, house prices will reveal greater disparities between regions than prices for more easily tradable goods and services. This contributes to regional disparities in inflation. In this report the author reviews a range of factors that are likely to cause greater disparities in house price inflation than in the price inflation of other goods and […]

Les sources des fluctuations des taux de change en Europe et leurs implications pour l'union monétaire

Technical Report No. 66 Alain DeSerres, René Lalonde
The objective of this paper is to provide an empirical evaluation of the degree of shock asymmetry between eight European countries that would form the core of a monetary union. Given that the relevant measure is the degree of real shock asymmetry, our approach is to use the observed movement in real exchange rates as […]
Content Type(s): Staff research, Technical reports Topic(s): Exchange rates JEL Code(s): F, F1, F15, F3, F31

Tests of Market Efficiency in the One-Week When-Issued Market for Government of Canada Treasury Bills

Technical Report No. 65 D. Graham Pugh
This report presents different tests of market efficiency in the when- issued market for Government of Canada treasury bills and examines the effectiveness, in this market, of Bank operations over the 1986 to mid- 1992 period. The when-issued market, which is a combination of a forward and futures market, enables market participants to buy or […]
Content Type(s): Staff research, Technical reports Topic(s): Financial markets JEL Code(s): G, G1, G14

Measurement Biases in the Canadian CPI

Technical Report No. 64 Allan Crawford
The consumer price index (CPI) may be an imperfect measure of changes in the cost of living owing to measurement biases known as commodity substitution bias, new goods bias, quality bias and outlet substitution bias. When the sum of these individual biases is positive, the rate of change in the CPI overstates the increase in […]
Content Type(s): Staff research, Technical reports Topic(s): Inflation and prices JEL Code(s): E, E3, E31

Monetary Policy, Uncertainty and the Presumption of Linearity

Technical Report No. 63 Douglas Laxton, David Rose, Robert Tetlow
This report shows that extreme conditions and volatility in markets are much more likely to result from systematic policy errors in gauging and responding to inflationary pressures in an economy than from unfortunate random shocks. We describe a simple model that incorporates the key features of the policy control process. We use two versions of […]

The Development of Financial Derivatives Markets: The Canadian Experience

Technical Report No. 62 Sean O'Connor
In response to an intense demand for risk management services since the early 1980s, the over-the-counter (OTC) markets for financial derivatives in Canada have developed more vigorously than those for exchange-traded (EXT) derivative securities. This is particularly evident for interest rate derivatives. The objectives of this paper are to examine why Canadian interest rate derivatives […]
Content Type(s): Staff research, Technical reports Topic(s): Financial markets JEL Code(s): G, G1, G10

Un modèle du coût du financement et du ratio d'endettement des entreprises non financières

Technical Report No. 61 Jean-François Fillion
The main aim of this paper is to calculate the cost of financing for Canadian non-financial businesses and to develop a model to explain financing cost trends on the basis of selected macroeconomic variables. The model described herein is a system based on four equations: one for the real after-tax cost of financing; one for […]
Content Type(s): Staff research, Technical reports Topic(s): Economic models
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