Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
38
result(s)
Exports and the Exchange Rate: A General Equilibrium Perspective
Staff Working Paper 2022-18
Patrick Alexander,
Abeer Reza
How do a country’s exports change when its currency depreciates? Does it matter which forces drive the exchange rate deprecation in the first place? We find that this relationship varies greatly depending on what drives exchange rate movements, and we conclude that the direct relationship between the exchange rate and exports is weak for Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Balance of payments and components,
Business fluctuations and cycles,
Exchange rate regimes,
Exchange rates,
International topics,
Monetary policy transmission,
Trade integration
JEL Code(s):
F,
F3,
F31,
F32,
F33,
F4,
F41
Monetary Policy and Redistribution in Open Economies
Staff Working Paper 2022-6
Xing Guo,
Pablo Ottonello,
Diego Perez
We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rate regimes,
Monetary policy
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4,
F41,
F44
Revisiting the Monetary Sovereignty Rationale for CBDCs
Staff Discussion Paper 2021-17
Skylar Brooks
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Debt management,
Digital currencies and fintech,
Exchange rate regimes,
Financial stability,
Monetary policy
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E52,
E58,
H,
H1,
H12,
H6,
H63
Fiscal Spillovers: The Case of US Corporate and Personal Income Taxes
Staff Working Paper 2021-41
Madeline Hanson,
Daniela Hauser,
Romanos Priftis
How do changes to personal and corporate income tax rates in the United States affect its trading partners? Spillover effects from cuts in the two taxes differ. They are generally small and negative for corporate taxes, but sizable and positive for personal income taxes.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Exchange rate regimes,
Fiscal policy,
International topics
JEL Code(s):
E,
E3,
E32,
E6,
E62,
F,
F4,
F44,
H,
H2,
H20
Monetary Policy Independence and the Strength of the Global Financial Cycle
Staff Working Paper 2020-25
Christian Friedrich,
Pierre Guérin,
Danilo Leiva-Leon
We propose a new strength measure of the global financial cycle by estimating a regime-switching factor model on cross-border equity flows for 61 countries. We then assess how the strength of the global financial cycle affects monetary policy independence, which is defined as the response of central banks' policy interest rates to exogenous changes in inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Exchange rate regimes,
Financial system regulation and policies,
International financial markets,
Monetary policy
JEL Code(s):
E,
E4,
E5,
F,
F3,
F32,
F4,
F42,
G,
G1,
G15,
G18
Policy Rules for Capital Controls
Staff Working Paper 2017-42
Gurnain Pasricha
This paper attempts to borrow the tradition of estimating policy reaction functions in monetary policy literature and apply it to capital controls policy literature. Using a novel weekly dataset on capital controls policy actions in 21 emerging economies over the period 1 January 2001 to 31 December 2015, I examine the mercantilist and macroprudential motivations for capital control policies.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rate regimes,
Financial stability,
Financial system regulation and policies,
International topics
JEL Code(s):
F,
F3,
F4,
F5,
G,
G0,
G1
Changes in Monetary Regimes and the Identification of Monetary Policy Shocks: Narrative Evidence from Canada
Staff Working Paper 2017-39
Julien Champagne,
Rodrigo Sekkel
We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Econometric and statistical methods,
Exchange rate regimes,
Inflation and prices,
Inflation targets,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E32,
E4,
E43,
E5,
E52,
E58
What to Expect When China Liberalizes Its Capital Account
Staff Discussion Paper 2016-10
Mark Kruger,
Gurnain Pasricha
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.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Balance of payments and components,
Exchange rate regimes,
International topics
JEL Code(s):
F,
F3,
F31,
F32,
G,
G1,
G18
Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries
Staff Working Paper 2015-45
Gabriel Bruneau,
Kevin Moran
We estimate the link between exchange rate fluctuations and the labour input of Canadian manufacturing industries. The analysis is based on a dynamic model of labour demand, and the econometric strategy employs a panel two-step approach for cointegrating regressions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Exchange rate regimes,
Exchange rates,
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
F,
F1,
F14,
F16,
F3,
F31,
F4,
F41,
J,
J2,
J23