Staff research

• Optimal Taylor Rules in an Estimated Model of a Small Open Economy

  Staff Working Paper 2004-36 Steve Ambler, Ali Dib, Nooman Rebei

  The authors compute welfare-maximizing Taylor rules in a dynamic general-equilibrium model of a small open economy.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Exchange rates, Inflation targets JEL Code(s): F, F2, F3, F31, F33

• The U.S. New Keynesian Phillips Curve: An Empirical Assessment

  Staff Working Paper 2004-35 Alain Guay, Florian Pelgrin

  The authors examine the evidence presented by Galí and Gertler (1999) and Galí, Gertler, and Lopez-Salido (2001, 2003) that the inflation dynamics in the United States can be well-described by the New Keynesian Phillips curve (NKPC).

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Inflation and prices JEL Code(s): C, C1, C13, C5, C52, E, E3, E31

• Market Valuation and Risk Assessment of Canadian Banks

  Staff Working Paper 2004-34 Ying Liu, Mingwei Yuan, Eli Papakirykos

  The authors apply the asset-valuation model developed by Rabinovitch (1989) to six publicly traded Canadian banks over the period 1982–2002.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions JEL Code(s): G, G1, G12, G2, G21

• Counterfeiting: A Canadian Perspective

  Staff Working Paper 2004-33 John Chant

  Counterfeiting is a significant public policy issue, because paper money, despite rumours of its demise, remains an important part of our payments system.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Bank notes JEL Code(s): E, E5, E58

• Investment, Private Information, and Social Learning: A Case Study of the Semiconductor Industry

  Staff Working Paper 2004-32 Rose Cunningham

  Social learning models of investment provide an interesting explanation for sudden changes in investment behaviour.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles JEL Code(s): C, C3, C35, E, E3, E32, L, L6, L63

• The New Keynesian Hybrid Phillips Curve: An Assessment of Competing Specifications for the United States

  Staff Working Paper 2004-31 David Dupuis

  Inflation forecasting is fundamental to monetary policy. In practice, however, economists are faced with competing goals: accuracy and theoretical consistency.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Inflation and prices JEL Code(s): E, E3, E31

• The New Basel Capital Accord and the Cyclical Behaviour of Bank Capital

  Staff Working Paper 2004-30 Mark Illing, Graydon Paulin

  The authors conduct a counterfactual simulation of the proposed rules under the new Basel Capital Accord (Basel II), including the revised treatment of expected and unexpected credit losses proposed by the Basel Committee in October 2003.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions JEL Code(s): G, G2, G21, G28, K, K2, K23

• Uninsurable Investment Risks

  Staff Working Paper 2004-29 Césaire Meh, Vincenzo Quadrini

  The authors study a general-equilibrium economy in which agents have the ability to invest in a risky technology.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Financial institutions, Financial markets JEL Code(s): D, D3, D31, E, E2, E21, G, G0

• Monetary and Fiscal Policies in Canada: Some Interesting Principles for EMU?

  Staff Working Paper 2004-28 Virginie Traclet

  Choosing a well-designed framework for fiscal and monetary policies is a challenge for economic authorities.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Fiscal policy, Monetary policy framework JEL Code(s): E, E5, E58, E6, E61, E63

• Financial Market Imperfection, Overinvestment, and Speculative Precaution

  Staff Working Paper 2004-27 Christian Calmès

  The author uses panel data to assess the sensitivity of investment to cash flow in non-financial firms, taking into account the role their financial health plays in investment decisions.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles JEL Code(s): D, D9, D92, E, E2, E22, E4, E44, G, G3, G33