May 11, 2000 Bank of Canada releases its semi-annual Monetary Policy Report Media Relations The Bank of Canada today released its eleventh Monetary Policy Report in which it discusses economic and financial trends in the context of Canada's inflation-control strategy. The Monetary Policy Report is published every May and November. Content Type(s): Press, Press releases
May 8, 2000 Bank of Canada to Stop Issuing $1000 Note Media Relations The Bank of Canada announced today that, effective May 12, it will stop issuing $1000 bank notes and will begin to withdraw them from circulation. The announcement follows the federal government's approval of an amendment to the Bank of Canada Notes Regulations to eliminate the $1000 note as part of the fight against money laundering […] Content Type(s): Press, Press releases
Probing Potential Output: Monetary Policy, Credibility, and Optimal Learning under Uncertainty Staff Working Paper 2000-10 James Yetman The effective conduct of monetary policy is complicated by uncertainty about the level of potential output, and thus about the size of the monetary policy response that would be sufficient to achieve the targeted inflation rate. One possible response to such uncertainty is for the monetary authority to "probe," interpreted here as actively using its policy response to learn about the level of potential output. Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Monetary policy and uncertainty, Potential output JEL Code(s): E, E5, E52, E58
Modelling Risk Premiums in Equity and Foreign Exchange Markets Staff Working Paper 2000-9 René Garcia, Maral Kichian The observed predictability of excess returns in equity and foreign exchange markets has largely been attributed to the presence of time-varying risk premiums in these markets. For example, excess equity returns were found to be explained by various financial and economic variables. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial markets, Market structure and pricing JEL Code(s): E, E4, E44, F, F3, F31, G, G1, G12, G15
Testing the Pricing-to-Market Hypothesis: Case of the Transportation Equipment Industry Staff Working Paper 2000-8 Lynda Khalaf, Maral Kichian Pricing-to-market (PTM) theory suggests that monopolistic firms which export adjust their destination-specific markups in reaction to exchange rate shocks. These adjustments limit changes in the price of their exports. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Market structure and pricing JEL Code(s): C, C1, C12, C15, L, L1, L11, L16
May 4, 2000 Bank of Canada Governor Gordon Thiessen plans to retire on 31 January 2001 Ted Requard Bank of Canada Governor Gordon Thiessen has officially informed the Bank’s Board of Directors and staff that he will retire at the end of his term, effective 31 January 2001. Content Type(s): Press, Press releases
April 26, 2000 Bank of Canada Governor speaks to the Chambre de commerce régionale de Sainte-Foy Media Relations Sainte-Foy, Quebec Governor Gordon Thiessen today talked about the steps that Canada should take to preserve the current economic expansion and improve performance over the long run, in particular by reaping some of the potential gains from the technological revolution that is now sweeping the world. Content Type(s): Press, Press releases
April 26, 2000 The Canadian Economy: Charting a Course for the Future Remarks Gordon Thiessen Chambre de commerce régionale de Sainte-Foy Sainte-Foy, Quebec The 1990s was a difficult period for Canada and the Canadian economy. From the beginning of the decade, it was clear that we had to grapple with the problems that had been hampering our economic performance through most of the 1970s and 1980s. Content Type(s): Press, Speeches and appearances, Remarks
Non-Parametric and Neural Network Models of Inflation Changes Staff Working Paper 2000-7 Greg Tkacz Previous studies have shown that interest rate yield spreads contain useful information about future changes in inflation. However, such studies have for the most part focused on linear models, ignoring potential non-linearities between interest rates and inflation. Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Inflation and prices JEL Code(s): C, C5, C51, E, E3, E31
International Financial Crises and Flexible Exchange Rates: Some Policy Lessons from Canada Technical Report No. 88 John Murray, Mark Zelmer, Zahir Antia This paper examines the behaviour of the Canadian dollar from 1997 to 1999 to see if there is any evidence of excess volatility or significant overshooting. A small econometric model of the exchange rate, based on market fundamentals, is presented and used to make tentative judgments about the extent to which the currency might have been systematically over- or undervalued. Content Type(s): Staff research, Technical reports Topic(s): Exchange rate regimes, Exchange rates JEL Code(s): F, F3, F31