F - International Economics

• Are Currency Crises Low-State Equilibria? An Empirical, Three-Interest-Rate Model

  Staff Working Paper 2006-5 Christopher Cornell, Raphael Solomon

  Suppose that the dynamics of the macroeconomy were given by (partly) random fluctuations between two equilibria: "good" and "bad."

  Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy and uncertainty JEL Code(s): C, C6, C62, E, E5, E59, F, F4, F41

• Structural Change in Covariance and Exchange Rate Pass-Through: The Case of Canada

  Staff Working Paper 2006-2 Lynda Khalaf, Maral Kichian

  The authors address empirically the implications of structural breaks in the variance-covariance matrix of inflation and import prices for changes in pass-through.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods JEL Code(s): C, C5, C52, E, E3, E31, F, F3, F31, F4, F40

• An Empirical Analysis of Foreign Exchange Reserves in Emerging Asia

  Staff Working Paper 2005-38 Marc-André Gosselin, Nicolas Parent

  Over the past few years, the ability of the United States to finance its current account deficit has been facilitated by massive purchases of U.S.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Financial stability, International topics JEL Code(s): C, C2, C23, F, F3, F31, G, G1, G15

• MUSE: The Bank of Canada's New Projection Model of the U.S. Economy

  Technical Report No. 96 Marc-André Gosselin, René Lalonde

  The analysis and forecasting of developments in the U.S. economy have always played a critical role in the formulation of Canadian economic and financial policy. Thus, the Bank places considerable importance on generating internal forecasts of U.S. economic activity as an input to the Canadian projection.

  Content Type(s): Staff research, Technical reports Research Topic(s): Business fluctuations and cycles, Economic models JEL Code(s): C, C5, C53, E, E1, E17, E2, E27, E3, E37, F, F1, F17

• The Exchange Rate and Canadian Inflation Targeting

  Staff Working Paper 2005-34 Christopher Ragan

  The author provides a non-technical explanation of the role played by the exchange rate in Canada's inflation-targeting monetary policy.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Inflation targets, Monetary policy implementation JEL Code(s): E, E5, E50, E52, F, F4, F41

• Degree of Internationalization and Performance: An Analysis of Canadian Banks

  Staff Working Paper 2005-32 Walid Hejazi, Eric Santor

  The international business literature measures the link between the degree of internationalization (DOI) of a firm's activities and its performance.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions JEL Code(s): F, F2, F23, G, G2, G21

• Has Exchange Rate Pass-Through Really Declined in Canada?

  Staff Working Paper 2005-29 Hafedh Bouakez, Nooman Rebei

  Several empirical studies suggest that exchange rate pass-through has declined in recent years in industrialized countries.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Economic models, Exchange rates, Inflation and prices, International topics JEL Code(s): F, F3, F4

• The Effects of the Exchange Rate on Investment: Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-22 Tarek Harchaoui, Faouzi Tarkhani, Terence Yuen

  Using industry-level data for 22 Canadian manufacturing industries, the authors examine the relationship between exchange rates and investment during the period 1981–97.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Domestic demand and components, Exchange rates JEL Code(s): D, D2, D24, F, F4

• The Effectiveness of Official Foreign Exchange Intervention in a Small Open Economy: The Case of the Canadian Dollar

  Staff Working Paper 2005-21 Rasmus Fatum, Michael R. King

  The Bank of Canada is one of very few central banks that has made records of the intraday timing of its intervention operations available to researchers.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Financial markets JEL Code(s): E, E5, E58, F, F3, F31, G, G1, G14, G15

• Labour Market Adjustments to Exchange Rate Fluctuations: Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-14 Danny Leung, Terence Yuen

  The authors provide some of the first empirical evidence on labour market adjustments to exchange rate movements in Canadian manufacturing industries.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Labour markets JEL Code(s): E, E2, E23, F, F4