Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1323
result(s)
Price Level Targeting in a Small Open Economy with Financial Frictions: Welfare Analysis
Staff Working Paper 2008-40
Ali Dib,
Caterina Mendicino,
Yahong Zhang
How important are the benefits of low price-level uncertainty? This paper explores the desirability of price-level path targeting in an estimated DSGE model fit to Canadian data. The policy implications are based on social welfare evaluations.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Inflation and prices,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E32,
E5,
E52
Import Price Dynamics in Major Advanced Economies and Heterogeneity in Exchange Rate Pass-Through
Staff Working Paper 2008-39
Stephane Dees,
Matthias Burgert,
Nicolas Parent
This paper aims at showing heterogeneity in the degree of exchange rate pass-through to import prices in major advanced economies at three different levels: 1) across destination markets; 2) across types of exporters (distinguishing developed economy from emerging economy exporters); and 3) over time.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
F,
F3,
F4,
F41
A Model of Costly Capital Reallocation and Aggregate Productivity
Staff Working Paper 2008-38
Shutao Cao
The author studies the effects of capital reallocation (the flow of productive capital across firms and establishments mainly through changes in ownership) on aggregate labour productivity. Capital reallocation is an important activity in the United States: on average, its total value is 3–4 per cent of U.S. GDP.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Productivity
JEL Code(s):
E,
E2,
E22,
L,
L1,
L16
Adopting Price-Level Targeting under Imperfect Credibility: An Update
Staff Working Paper 2008-37
Oleksiy Kryvtsov,
Malik Shukayev,
Alexander Ueberfeldt
This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields higher welfare than inflation targeting.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
The Role of Bank Capital in the Propagation of Shocks
Staff Working Paper 2008-36
Césaire Meh,
Kevin Moran
Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the propagation of shocks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Financial institutions,
Financial system regulation and policies,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E52,
G,
G2,
G21
Globalization and Inflation: The Role of China
Staff Working Paper 2008-35
Denise Côté,
Carlos De Resende
In this paper, we develop a theoretical model which identifies four channels–import prices, competition with domestic suppliers and workers, and commodity prices–through which price- and wage-setting conditions in country j may affect inflation in country i.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
International topics
JEL Code(s):
E,
E2,
E22,
E3,
E32,
E4,
E44
Combining Canadian Interest-Rate Forecasts
Staff Working Paper 2008-34
David Bolder,
Yuliya Romanyuk
Model risk is a constant danger for financial economists using interest-rate forecasts for the purposes of monetary policy analysis, portfolio allocations, or risk-management decisions. Use of multiple models does not necessarily solve the problem as it greatly increases the work required and still leaves the question "which model forecast should one use?"
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Interest rates
JEL Code(s):
C,
C1,
C11,
E,
E4,
E43,
E47
Human Capital Risk and the Firmsize Wage Premium
Staff Working Paper 2008-33
Danny Leung,
Alexander Ueberfeldt
Why do employed persons in large firms earn more than employed persons in small firms, even after controlling for observable characteristics? Complementary to previous results, this paper proposes a mechanism that gives an answer to this question.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Labour markets,
Productivity
JEL Code(s):
J,
J2,
J24,
J3,
J31
Market Structure and the Diffusion of E-Commerce: Evidence from the Retail Banking Industry
Staff Working Paper 2008-32
Jason Allen,
Robert Clark,
Jean-François Houde
This paper studies the role that market structure plays in affecting the diffusion of electronic banking. Electronic banking (and electronic commerce more generally) reduces the cost of performing many types of transactions for firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Market structure and pricing
JEL Code(s):
D,
D1,
D14,
D4,
G,
G2,
G21,
L,
L1