Are Currency Crises Low-State Equilibria? An Empirical, Three-Interest-Rate Model Staff Working Paper 2006-5 Christopher Cornell, Raphael Solomon Suppose that the dynamics of the macroeconomy were given by (partly) random fluctuations between two equilibria: "good" and "bad." Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy and uncertainty JEL Code(s): C, C6, C62, E, E5, E59, F, F4, F41
October 18, 2007 Monetary Policy Report – October 2007 There have been a number of significant economic and financial developments since the time of the July Monetary Policy Report Update. Content Type(s): Publications, Monetary Policy Report
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 Research Topic(s): International topics JEL Code(s): E, E2, E22, E3, E32, E4, E44
The Role of Credit in International Business Cycles Staff Working Paper 2012-36 TengTeng Xu This paper examines the role of bank credit in modeling and forecasting business cycle fluctuations, and investigates the international transmission of US credit shocks, using a global vector autoregressive (GVAR) framework and associated country-specific error correction models. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Econometric and statistical methods, International financial markets JEL Code(s): C, C3, C32, E, E3, E32, E4, E44, G, G2, G21
Relative Prices, Trading Gains, and Real GDI: The Case of Canada Staff Discussion Paper 2009-4 Yi Zheng Treating imports as intermediate inputs to domestic production, the author adopts the translog function approach to model real gross domestic income (GDI) in Canada over the 1961–2006 period. She explores the role of price ratios, such as terms of trade and the real effective exchange rate, in explaining changes in real GDI, trade openness, trade […] Content Type(s): Staff research, Staff discussion papers Research Topic(s): Econometric and statistical methods, Productivity JEL Code(s): C, C4, C43, D, D3, D33, F, F1, F10, O, O4, O47
November 18, 2010 Bank of Canada Review - Autumn 2010 The premise that exchange rate pass-through has declined is critically reassessed; intensity in the negative feedback process between financial sector developments and the real economy during the recent global crisis is examined; update on past decade’s changing trends in debt issuance in Canada relative to those in other capital markets. Content Type(s): Publications, Bank of Canada Review
Ecosystem Models for a Central Bank Digital Currency: Analysis Framework and Potential Models Staff Discussion Paper 2024-13 Youming Liu, Francisco Rivadeneyra, Edona Reshidi, Oleksandr Shcherbakov, André Stenzel This note analyzes different economic models of a central bank digital currency (CBDC) ecosystem where the central bank chooses different levels of market involvement and usage of policy levers. The analysis suggests that there are trade-offs between the costs to the central bank and its ability to achieve policy goals like universal access. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Central bank research, Digital currencies and fintech, Financial services JEL Code(s): E, E5, E58, E6, E61, L, L5
January 29, 2000 Annual Report 1999 The Canadian economy regained strong momentum in 1999 as the U.S. economy remained vigorous, the global economy recovered, and commodity prices moved upwards. Content Type(s): Publications, Annual Report
Essays on Financial Stability Technical Report No. 95 John Chant, Alexandra Lai, Mark Illing, Fred Daniel The four essays published here provide a useful overview for anyone interested in understanding the issues and policy environment surrounding financial system stability. Content Type(s): Staff research, Technical reports Research Topic(s): Financial institutions, Financial markets JEL Code(s): G, G2, G28
External Stability, Real Exchange Rate Adjustment and the Exchange Rate Regime in Emerging-Market Economies Staff Discussion Paper 2011-5 Olivier Gervais, Lawrence L. Schembri, Lena Suchanek In emerging-market economies, real exchange rate adjustment is critical for maintaining a sustainable current account position and thereby for helping to reduce macroeconomic and financial instability. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Development economics, Exchange rate regimes, International topics JEL Code(s): F, F3, F31, F32, F4, F41