Staff research, Publications

• December 21, 2006

  Using No-Arbitrage Models to Predict Exchange Rates

  Financial System Review - December 2006 Antonio Diez de los Rios

  Content Type(s): Publications, Financial System Review articles
• December 21, 2006

  Financial System Review - December 2006

  

  The financial system makes an important contribution to the welfare of all Canadians. The ability of households and firms to confidently hold and transfer financial assets is one of the fundamental building blocks of the Canadian economy.

  Content Type(s): Publications, Financial Stability Report
• 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 Research 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 Research 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 Research Topic(s): International topics, Potential output, Productivity

• Canadian City Housing Prices and Urban Market Segmentation

  Staff Working Paper 2006-49 Jason Allen, Robert Amano, David Byrne, Allan Gregory

  The authors provide a detailed empirical analysis of Canadian city housing prices. They examine the long-run relationship between city house prices in Canada from 1981 to 2005 as well as idiosyncratic relations between city prices and city-specific variables.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Regional economic developments JEL Code(s): C, C2, C22, C3, C32, R, R2
• December 6, 2006

  The Art and Design of Canadian Bank Notes

  

  This volume offers readers a behind-the-scenes look at the demanding world of bank note design, highlighting the beauty of Canada's bank notes and celebrating the engraver's art. Soft cover, 124 pages (2006).

  Content Type(s): Publications, Books and monographs, Souvenir books Research Topic(s): Bank notes

• Modelling Term-Structure Dynamics for Risk Management: A Practitioner's Perspective

  Staff Working Paper 2006-48 David Bolder

  Modelling term-structure dynamics is an important component in measuring and managing the exposure of portfolios to adverse movements in interest rates.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Financial markets, Interest rates JEL Code(s): C, C0, C6, E, E4, G, G1

• Stress Testing the Corporate Loans Portfolio of the Canadian Banking Sector

  Staff Working Paper 2006-47 Miroslav Misina, David Tessier, Shubhasis Dey

  Stress testing, at its most general level, is an investigation of the performance of an entity under abnormal operating conditions.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability JEL Code(s): C, C1, C15, G, G2, G21, G3, G33

• Survey-Based Estimates of the Term Structure of Expected U.S. Inflation

  Staff Working Paper 2006-46 Sharon Kozicki, P. A. Tinsley

  Surveys provide direct information on expectations, but only short histories are available at quarterly frequencies or for long-horizon expectations.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Inflation targets, Monetary policy and uncertainty JEL Code(s): E, E3, E5