Alternative Public Spending Rules and Output Volatility Staff Working Paper 2002-37 Jean-Paul Lam, William Scarth One of the central lessons learned from the Great Depression was that adjusting government spending each year to balance the budget increases the volatility of output. Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Monetary policy transmission JEL Code(s): E, E5, E52, E58, E6, E62
An Eclectic Approach to Estimating U.S. Potential GDP Staff Working Paper 2002-36 Marc-André Gosselin, René Lalonde The authors describe the principal results obtained from a new method applied to the estimation of potential U.S. GDP. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Potential output JEL Code(s): C, C3, C32, E, E2, E23, E3, E32
The Impact of Common Currencies on Financial Markets: A Literature Review and Evidence from the Euro Area Staff Working Paper 2002-35 Liliane Karlinger This paper reviews both the theoretical and empirical literature on the impact of common currencies on financial markets and evaluates the first three years of experience with Economic and Monetary Union (EMU). Content Type(s): Staff research, Staff working papers Topic(s): Exchange rate regimes, Financial markets JEL Code(s): E, E4, E44, F, F2, F21, F3, F36, G, G1, G15
How Do Canadian Banks That Deal in Foreign Exchange Hedge Their Exposure to Risk? Staff Working Paper 2002-34 Chris D'Souza This paper examines the daily hedging and risk-management practices of financial intermediaries in the Canadian foreign exchange (FX) market. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial markets, Market structure and pricing JEL Code(s): F, F3, F31, G, G1, G14, G2, G21
Alternative Trading Systems: Does One Shoe Fit All? Staff Working Paper 2002-33 Nicolas Audet, Toni Gravelle, Jing Yang This paper examines the factors that lead liquidity-motivated investors to choose the type of market structure they prefer. Content Type(s): Staff research, Staff working papers Topic(s): Financial markets JEL Code(s): G, G1, G10, G14, G18
Labour Markets, Liquidity, and Monetary Policy Regimes Staff Working Paper 2002-32 David Andolfatto, Scott Hendry, Kevin Moran We develop an equilibrium model of the monetary policy transmission mechanism that highlights information frictions in the market for money and search frictions in the market for labour. Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy and uncertainty, Monetary policy transmission JEL Code(s): E, E4, E5
Supply Shocks and Real Exchange Rate Dynamics: Canadian Evidence Staff Working Paper 2002-31 Céline Gauthier, David Tessier In this paper, we study the impact of supply shocks on the Canadian real exchange rate. We specify a structural vector-error-correction model that links the real exchange rate to different fundamentals. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates JEL Code(s): C, C3, C32, F, F3, F31
November 1, 2002 Price Adjustment and Monetary Policy Proceedings of a conference held by the Bank of Canada, November 2002 (proceedings volume, available in electronic format only) Content Type(s): Conferences and workshops
October 24, 2002 Release of the Monetary Policy Report Opening statement David Dodge Press conference in New York The Canadian economy has been expanding strongly so far this year and is now operating fairly close to its full production capacity. Consumer price inflation has risen above the 2 per cent target and is expected to rise further before year-end because of high oil prices and a number of other relative price movements. Content Type(s): Press, Speeches and appearances, Opening statements
October 23, 2002 Bank of Canada releases its October Monetary Policy Report Media Relations Ottawa, Ontario Today, the Bank of Canada released its October Monetary Policy Report, in which it discusses economic and financial trends in the context of Canada's inflation-control strategy. Content Type(s): Press, Press releases