The Implications of the FTA and NAFTA for Canada and Mexico Technical Report No. 70 William White This report highlights the possible implications of the Free Trade Agreement (FTA) and the North American Free Trade Agreement (NAFTA) for Canada and Mexico. While it is still early, the initial evidence indicates that these treaties are contributing to a continental process of industrial restructuring that will contribute to higher living standards over time. The […] Content Type(s): Staff research, Technical reports Research Topic(s): International topics JEL Code(s): F, F1, F13
Should Central Banks Worry About Nonlinearities of their Large-Scale Macroeconomic Models? Staff Working Paper 2017-21 Vadym Lepetyuk, Lilia Maliar, Serguei Maliar How wrong could policymakers be when using linearized solutions to their macroeconomic models instead of nonlinear global solutions? Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Economic models JEL Code(s): C, C6, C61, C63, C68, E, E3, E31, E5, E52
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
Regulatory Changes and Financial Structure: The Case of Canada Staff Working Paper 2004-26 Christian Calmès The author documents some stylized facts about the Canadian financial structure. He explores these empirical facts in the context of Canadian financial legislation and finds that, over the 1990s, Canadian businesses became more heavily dependent on financial markets as their primary source of external funding. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial services, Recent economic and financial developments JEL Code(s): G, G2, G20, G21
On the Programmability and Uniformity of Digital Currencies Staff Working Paper 2025-18 Jonathan Chiu, Cyril Monnet Central bankers argue that programmable digital currencies may compromise the uniformity of money. We develop a stylized model to examine this argument and the trade-offs involved in circulating programmable money. Content Type(s): Staff research, Staff working papers Research Topic(s): Digital currencies and fintech, Payment clearing and settlement systems JEL Code(s): E, E5, E50, E58
Which Bank is the "Central" Bank? An Application of Markov Theory to the Canadian Large Value Transfer System Staff Working Paper 2008-42 Morten Bech, James Chapman, Rodney J. Garratt We use a method similar to Google's PageRank procedure to rank banks in the Canadian Large Value Transfer System (LVTS). Along the way we obtain estimates of the payment processing speeds for the individual banks. Content Type(s): Staff research, Staff working papers Research Topic(s): Payment clearing and settlement systems JEL Code(s): C, C1, C11, E, E5, E50, G, G2, G20
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 Research Topic(s): Credibility, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52
Pocket Banks and Out-of-Pocket Losses: Links between Corruption and Contagion Staff Working Paper 2005-23 Raphael Solomon The author describes a model with a corrupt banking system, in which bankers knowingly lend at market interest rates to back projects riskier than the market rate indicates. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability JEL Code(s): D, D8, D82, G, G1, G19, G2, G21
Some Notes on Monetary Policy Rules with Uncertainty Staff Working Paper 2003-16 Gabriel Srour The author explores the role that Taylor-type rules can play in monetary policy, given the degree of uncertainty in the economy. The optimal rule is derived from a simple infinite-horizon model of the monetary transmission mechanism, with only additive uncertainty. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy and uncertainty JEL Code(s): E, E5, E52
Time Variation in Okun's Law: A Canada and U.S. Comparison Staff Working Paper 2010-7 Kimberly Beaton This article investigates the stability of Okun's law for Canada and the United States using a time varying parameter approach. Time variation is modeled as driftless random walks and is estimated using the median unbiased estimator approach developed by Stock and Watson (1998). Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Labour markets JEL Code(s): E, E2, E24, J, J0, J00