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Bank of Canada RSS Feedsen2024-03-29T01:34:10+00:00The Exchange Rate, Productivity, and the Standard of Living
https://www.bankofcanada.ca/wp-content/uploads/2010/06/r001b-e.pdf
This article examines the recent proposition that the decline in Canada's standard of living relative to that of the United States is causally related to the decline in our exchange rate. The authors explore the main channels through which the exchange rate and the standard of living could be related—productivity and the terms of trade—focusing mainly on productivity. They conclude that the decline in world commodity prices and weak demand for domestic output were affecting both Canada's standard of living and the exchange rate and that the flexible exchange rate regime itself did not play an independent role.1999-12-15T09:39:38+00:00enThe Exchange Rate, Productivity, and the Standard of Living1999-12-15Real Exchange Rate Indexes for the Canadian Dollar
https://www.bankofcanada.ca/wp-content/uploads/2010/06/r994c-e.pdf
In this article, the authors explain the methodology used to construct real exchange rate (RER) indexes. They also compare and assess various Canadian RER indexes from both an empirical and conceptual standpoint.
The authors conclude that both theory and empirical evidence suggest that the best RER indexes are those based on unit labour costs. They note, however, that, for practical reasons, policy-makers should also consider RER indexes based on prices when formulating monetary policy.1999-11-14T08:50:14+00:00enReal Exchange Rate Indexes for the Canadian Dollar1999-11-14