The Role of Expenditure Switching in the Global Imbalance Adjustment Staff Working Paper 2010-16 Wei Dong In theory, nominal exchange rate movements can lead to “expenditure switching” when they generate changes in the relative prices of goods across countries. This paper explores whether the expenditure-switching role of exchange rates has changed in the current episode of significant global imbalances. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, International topics JEL Code(s): F, F3, F4
June 20, 2010 The Bank of Canada’s Extraordinary Liquidity Policies and Moral Hazard Financial System Review - June 2010 Carolyn A. Wilkins, Jack Selody Bank of Canada published a report establishing a set of principles to guide the extraordinary liquidity interventions it was making in response to the systemic shocks buffeting the Canadian financial system. These principles provided a framework for maintaining consistency between the Bank’s actions and its responsibilities as lender of last resort to the financial system, while allowing sufficient fl exibility to respond to the unique challenges of the crisis. Content Type(s): Publications, Financial System Review articles
June 20, 2010 The Impact of the Financial Crisis on Cross-Border Funding Financial System Review - June 2010 Harri Vikstedt, Jonathan Witmer, Yaz Terajima Content Type(s): Publications, Financial System Review articles
June 20, 2010 The Role of Securities Lending in Market Liquidity Financial System Review - June 2010 Nadja Dreff Content Type(s): Publications, Financial System Review articles
June 20, 2010 Securitized Products, Disclosure, and the Reduction of Systemic Risk Financial System Review - June 2010 Carolyn A. Wilkins, Scott Hendry, Stéphane Lavoie Content Type(s): Publications, Financial System Review articles
June 20, 2010 The Bank of Canada’s Analytic Framework for Assessing the Vulnerability of the Household Sector Financial System Review - June 2010 Ramdane Djoudad Content Type(s): Publications, Financial System Review articles
June 20, 2010 Financial System Review - June 2010 Risks to the stability of both the Canadian and the global financial systems appeared to be diminishing for most of the period since the last Financial System Review (FSR), as the recovery in financial conditions and the macroeconomic environment continued to solidify.FSR Highlights - June 2010 Content Type(s): Publications, Financial Stability Report
June 18, 2010 Fortune Favours the Bold Remarks Mark Carney Newfoundland Oil & Gas Industries Association St. John's, Newfoundland and Labrador From the end of 2008 to the middle of last year, Canada experienced a short, sharp recession. With the exception of government spending, all major components of aggregate demand declined, and industrial production dropped 15 per cent. Content Type(s): Press, Speeches and appearances, Remarks
Inflation and Unemployment in Competitive Search Equilibrium Staff Working Paper 2010-15 Mei Dong Using a monetary search model, Rocheteau, Rupert and Wright (2007) show that the relationship between inflation and unemployment can be positive or negative depending on the primitives of the model. The key features are indivisible labor, nonseparable preferences and bargaining. Content Type(s): Staff research, Staff working papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E1, E12, E13, E4, E40, E5, E52
June 17, 2010 Operational Changes to the Bond Buyback Program In April 2010, officials from the Department of Finance and the Bank of Canada sought the views of institutional investors, government securities distributors, and other interested parties on issues relating to the management of the cash flow profile of Government of Canada securities over the medium term and on the demand for long-term bonds (nominal and Real Return). Content Type(s): Press, Market notices