F4 - Macroeconomic Aspects of International Trade and Finance - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T12:03:03+00:00Stagflation and Topsy-Turvy Capital Flows
https://www.bankofcanada.ca/2022/11/staff-working-paper-2022-46/
Unregulated capital flows are likely excessive during a stagflation episode, owing to a macroeconomic externality operating through the economy’s supply side. Inflows raise domestic wages and cause unwelcome upward pressure on firm costs, yet market forces likely generate such inflows. Optimal capital flow management instead requires net outflows.2022-11-10T10:24:04+00:00enStagflation and Topsy-Turvy Capital Flows2022-11-10Inflation and pricesInternational financial marketsInternational topicsMonetary policyStaff Working Paper 2022-46https://www.bankofcanada.ca/wp-content/uploads/2022/11/swp2022-46.pdfStaff Working Paper 2022-46Julien BenguiLouphou CoulibalyNovember 2022DD6D62EE5E52FF3F32F38F4F41Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?
https://www.bankofcanada.ca/2022/11/staff-working-paper-2022-45/
The COVID-19 pandemic has caused an atypical recession in which some sectors of the economy boomed and others collapsed. This required a unique fiscal policy reaction to both support firms and stimulate activity in sectors with slack. Was fiscal policy able to get where it was needed? Mostly, yes.2022-11-07T12:55:12+00:00enFiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?2022-11-07Coronavirus disease (COVID-19)Firm dynamicsFiscal policyInternational topicsStaff Working Paper 2022-45https://www.bankofcanada.ca/wp-content/uploads/2022/11/swp2022-45.pdfStaff Working Paper 2022-45Pierre-Olivier GourinchasŞebnem Kalemli-ÖzcanVeronika PenciakovaNicholas SanderNovember 2022DD5D57EE6E62FF4F41International Transmission of Quantitative Easing Policies: Evidence from Canada
https://www.bankofcanada.ca/2022/06/staff-working-paper-2022-30/
This paper examines the cross-border spillovers from major economies’ quantitative easing (QE) policies to their trading partners. We concentrate on spillovers from the US to Canada during the zero lower bound period when QE policies were actively used.2022-06-30T07:51:33+00:00enInternational Transmission of Quantitative Easing Policies: Evidence from Canada2022-06-30Business fluctuations and cyclesInternational topicsMonetary policy transmissionStaff Working Paper 2022-30https://www.bankofcanada.ca/wp-content/uploads/2022/06/swp2022-30.pdfInternational Transmission of Quantitative Easing Policies: Evidence from CanadaSerdar KabacaKerem TuzcuogluJune 2022EE5E52FF4F41F44Foreign Exchange Interventions: The Long and the Short of It
https://www.bankofcanada.ca/2022/06/staff-working-paper-2022-25/
This paper studies the effects of foreign exchange (FX) interventions in a two-region model where governments issue both short- and long-term bonds. We find that the term premium channel dominates the trade balance channel in our calibrated model. As a result, the conventional beggar-thy-neighbor effects of interventions are overturned.2022-06-06T15:10:58+00:00enForeign Exchange Interventions: The Long and the Short of It2022-06-06Business fluctuations and cyclesExchange rate regimesExchange ratesForeign reserves managementInternational financial marketsInternational topicsStaff Working Paper 2022-25https://www.bankofcanada.ca/wp-content/uploads/2022/06/swp2022-25.pdfForeign Exchange Interventions: The Long and the Short of ItPatrick AlexanderSami AlpandaSerdar KabacaJune 2022FF3F31F33F4F41Exports and the Exchange Rate: A General Equilibrium Perspective
https://www.bankofcanada.ca/2022/04/staff-working-paper-2022-18/
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.2022-04-04T14:42:27+00:00enExports and the Exchange Rate: A General Equilibrium Perspective2022-04-04Balance of payments and componentsBusiness fluctuations and cyclesExchange rate regimesExchange ratesInternational topicsMonetary policy transmissionTrade integrationStaff Working Paper 2022-18https://www.bankofcanada.ca/wp-content/uploads/2022/04/swp2022-18.pdfExports and the Exchange Rate: A General Equilibrium PerspectivePatrick AlexanderAbeer RezaApril 2022FF3F31F32F33F4F41Monetary Policy and Redistribution in Open Economies
https://www.bankofcanada.ca/2022/02/staff-working-paper-2022-6/
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.2022-02-07T08:54:58+00:00enMonetary Policy and Redistribution in Open Economies2022-02-07Exchange rate regimesMonetary policyStaff Working Paper 2022-6https://www.bankofcanada.ca/wp-content/uploads/2022/02/swp2022-6.pdfStaff Working Paper 2022-6Xing GuoPablo OttonelloDiego PerezFebruary 2022EE3E32E5E52FF4F41F44On the Wedge Between the PPI and CPI Inflation Indicators
https://www.bankofcanada.ca/2022/01/staff-working-paper-2022-5/
We find that the CPI and PPI inflation indexes co-moved strongly throughout the late 20th century, but their correlation has fallen substantially since the early 2000s. We offer a structural explanation for this divergence based on the growth of global supply chains since 2000. This finding offers a unique perspective for the future design of optimal monetary policy.2022-01-26T13:08:07+00:00enOn the Wedge Between the PPI and CPI Inflation Indicators2022-01-26Inflation and pricesInflation targetsInternational topicsMonetary policyStaff Working Paper 2022-5https://www.bankofcanada.ca/wp-content/uploads/2022/01/swp2022-5.pdfOn the Wedge Between the PPI and CPI Inflation IndicatorsShang-Jin WeiYinxi XieJanuary 2022EE3E31E5E52E58FF1F11F12F4F41F6F62