Recent economic and financial developments

• October 14, 2007

  The Effect of China on Global Prices

  Bank of Canada Review - Autumn 2007 Michael Francis

  The dramatic growth in China's exports of consumer goods such as clothing, toys, and electronics, and imports of primary commodities such as oil and metals is having major effects on global supply and demand. In examining China's role in global relative price changes, Francis finds that downward pressure on the relative prices of consumer goods is likely to persist as China's large labour supply continues its migration into manufacturing. Likewise, China's size and growth will also remain key drivers of global commodities demand for some time. Despite these forces, inflation-targeting central banks have the tools to keep inflation close to target, thus offsetting any persistent upward or downward inflationary pressure.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation and prices, International topics, Recent economic and financial developments
• June 15, 2007

  Interpreting Canada's Productivity Performance in the Past Decade: Lessons from Recent Research

  Bank of Canada Review - Summer 2007 Richard Dion

  Dion examines the evolution of Canadian productivity since the mid-1990s, using the United States as a benchmark. During this period, trend productivity growth in Canada remained modest, whereas the U.S. witnessed a strong resurgence. Among the factors identified as potential root causes of Canada's lower productivity performance are a lower investment in information and communications technology, reallocation and adjustment costs associated with large relative price movements, and a weak demand for innovation.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Productivity, Recent economic and financial developments