Gurnain Pasricha is a Principal Researcher in International Economic Analysis Department. Her research interests include measuring international financial integration, management of capital flows in emerging economies and the use and effectiveness of capital controls, financial crises and macroprudential policy. Since joining the Bank in 2009, she has also worked in the Financial Stability Department, where her work focused on systemic risk assessment for Canada and building early warning models.
Gurnain obtained a PhD in International Economics from University of California, Santa Cruz (UCSC) and is also a Research Affiliate of the Center for Analytical Finance (CAFIN).
This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across borders.
When China joined the World Trade Organization in December 2001, it marked a watershed for the world economy. Ten years from now, the opening of China’s capital account and the financial integration that will unfold will be viewed as a milestone of similar importance.
Using a novel data set on capital control actions in 17 emerging-market economies (EMEs) over the period 2001–11, we provide new evidence on domestic and multilateral (or spillover) effects of capital controls.
We assess the motivations for changing capital controls and their effectiveness in India, a country with extensive and long-standing controls. We focus on the controls on foreign borrowing that can, in principle, be motivated by macroprudential concerns.
This article focuses on a quantitative method to identify financial system vulnerabilities, specifically, an imbalance indicator model (IIM) and its application to Canada. An IIM identifies potential vulnerabilities in a financial system by comparing current economic and financial data with data from periods leading up to past episodes of financial stress. It complements other sources of information - including market intelligence and regular monitoring of the economy - that policy-makers use to assess vulnerabilities.