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Bank of Canada Review - Winter 2006-2007

January 23, 2007
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BoC Review - Winter 2006-2007
Available as: PDF

Cover page

French Provincial Issues in Canada

The coins pictured on the cover are part of the National Currency Collection, Bank of Canada.
Photography by Gord Carter, Ottawa.
Content Type(s): Publications, Bank of Canada Review
December 23, 2006

Global Savings, Investment, and World Real Interest Rates

Bank of Canada Review - Winter 2006-2007 Brigitte Desroches, Michael Francis
Over the past 25 years, world long-term interest rates have declined to levels not seen since the 1960s. This decline has been accompanied by falling world investment and savings rates. The authors explore global saving and investment outcomes that have led to the fall in the world real interest rate. The results show that the key factors explaining movements in savings and investment are variables that evolve relatively slowly over time, such as labour force growth and the age structure of the world economy. The conclusions suggest that, over the coming years, it is unlikely that these slowly changing variables will be a source of significant changes in world real interest rates.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Interest rates, International topics
December 20, 2006

Why Monetary Policy Matters: A Canadian Perspective

Bank of Canada Review - Winter 2006-2007 Christopher Ragan
This article provides answers to several key questions about Canadian monetary policy. First, what is monetary policy? Second, why does the Bank of Canada focus on the control of inflation rather than other macroeconomic variables? Third, how do the Bank's actions influence the rate of inflation? And, finally, how can monetary policy deliver genuine and significant benefits to society?
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Business fluctuations and cycles, Inflation: costs and benefits, Monetary policy framework
December 18, 2006

A Summary of the Bank of Canada Conference on Fixed-Income Markets, 3–4 May 2006

Bank of Canada Review - Winter 2006-2007 Gregory Bauer, Scott Hendry
The Bank of Canada's interest in fixed-income markets spans several of its functional areas of responsibility, including monetary policy, funds management, and financial system stability and efficiency. For that reason, the 2006 conference brought together top academics and central bankers from around the world to discuss leading-edge work in the field of fixed-income research. The papers and discussions cover such topics as the efficiency of fixed-income markets, price formation, the determinants of the yield curve, and volatility modelling. This article provides a short summary of each conference paper and the ensuing discussion.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Debt management, Financial markets, Interest rates
December 8, 2006

Perspectives on Productivity and Potential Output Growth: A Summary of the Joint Banque de France/Bank of Canada Workshop, 24–25 April 2006

Bank of Canada Review - Winter 2006-2007 Gilbert Cette, Donald Coletti
A nation's productivity is the prime determinant of its real incomes and standard of living, as well as being a major determinant of its potential output. In the short run, deviations of actual output from potential output are a useful indicator of inflationary pressures. This article is a short summary of the proceedings of the workshop, which focus on productivity and potential output growth among industrialized countries. The research is organized under three main themes: estimating potential growth; productivity and growth; and institutions, policies, and growth.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics, Potential output, Productivity