Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1290
result(s)
Are Bygones not Bygones? Modeling Price Level Targeting with an Escape Clause and Lessons from the Gold Standard
Staff Working Paper 2008-27
Paul Masson,
Malik Shukayev
Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both regimes return the price level (or price of gold) to its target. The experience of suspension of the gold standard in World War I, resumption in the 1920s (for some countries at a different parity), and final abandonment is reviewed.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
Price-Level versus Inflation Targeting with Financial Market Imperfections
Staff Working Paper 2008-26
Francisco Covas,
Yahong Zhang
This paper compares price-level-path targeting (PT) with inflation targeting (IT) in a sticky-price, dynamic, general equilibrium model augmented with imperfections in both the debt and equity markets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E4,
E40,
E5,
E50
Good Policies or Good Fortune: What Drives the Compression in Emerging Market Spreads?
Staff Working Paper 2008-25
Philipp Maier,
Garima Vasishtha
Since 2002, spreads on emerging market sovereign debt have fallen to historical lows. Given the close links between sovereign spreads, capital flows to emerging markets, and economic growth, understanding the factors driving these spreads is very important. We address this issue in two stages.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Development economics,
Financial stability,
International topics
JEL Code(s):
E,
E4,
E43,
F,
F3,
F34,
G,
G1,
G12,
G15
Do Central Banks Respond to Exchange Rate Movements? Some New Evidence from Structural Estimation
Staff Working Paper 2008-24
Wei Dong
This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
International topics,
Monetary policy framework
JEL Code(s):
F,
F3,
F4
On the Amplification Role of Collateral Constraints
Staff Working Paper 2008-23
Caterina Mendicino
Following the seminal contribution of Kiyotaki and Moore (1997), the role of collateral constraints for business cycle fluctuations has been highlighted by several authors and collateralized debt is becoming a popular feature of business cycle models.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates
JEL Code(s):
E,
E2,
E20,
E3,
E32
Information Shocks, Jumps, and Price Discovery - Evidence from the U.S. Treasury Market
Staff Working Paper 2008-22
George Jiang,
Ingrid Lo,
Adrien Verdelhan
We examine large price changes, known as jumps, in the U.S. Treasury market. Using recently developed statistical tools, we identify price jumps in the 2-, 3-, 5-, 10-year notes and 30-year bond during the period of 2005-2006.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets
JEL Code(s):
G,
G1,
G12,
G14
The Cost of Equity in Canada: An International Comparison
Staff Working Paper 2008-21
Jonathan Witmer
This paper calculates an implied cost of equity for 19 developed countries from 1991 to 2006. During this period, there has been a decline in the cost of equity of about 10-15 bps per year, which can be partially attributed to declining government yields and declining inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
International topics
JEL Code(s):
G,
G3,
G30,
G38
The Effect of the Sarbanes-Oxley Act on CEO Pay for Luck
Staff Working Paper 2008-20
Teodora Paligorova
According to the rent-extraction hypothesis, weak corporate governance allows entrenched CEOs to capture the pay-setting process and benefit from events outside of their control – get paid for luck.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Labour markets
JEL Code(s):
G,
G3,
G38,
J,
J3,
J33,
M,
M5,
M52
Inflation, Nominal Portfolios, and Wealth Redistribution in Canada
Staff Working Paper 2008-19
Césaire Meh,
Yaz Terajima
There is currently a policy debate on potential refinements to monetary policy regimes in countries with low and stable inflation such as the U.S. and Canada. For example, in Canada, a systematic review of the current inflation targeting framework is underway.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation targets,
Inflation: costs and benefits,
Monetary policy framework,
Sectoral balance sheet
JEL Code(s):
D,
D3,
D31,
D5,
D58,
E,
E3,
E31,
E5,
E50