Posts

• July 28, 1997

  Bank of Canada Releases Interim Report on Wartime Gold Transactions

  Media Relations

  The Bank of Canada today released an interim report on the results of a search for records relating to wartime gold transactions.

  Content Type(s): Press, Press releases

• Canadian Short-Term Interest Rates and the BAX Futures Market: Analysis of the Impact of Volatility on Hedging Activity and the Correlation of Returns between Markets

  Staff Working Paper 1997-18 David Watt

  This paper analyses how Canadian financial firms manage short-term interest rate risk through the use of BAX futures contracts. The results show that the most effective hedging strategy is, on average, a static strategy based on linear regression that assumes constant variances, even though dynamic models allowing for time-varying variances are found to have superior explanatory power.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial markets, Interest rates JEL Code(s): E, E4, E43
• June 26, 1997

  Bank Rate Raised 1/4 of a Percentage Point

  Media Relations Ottawa, Ontario

  The Bank of Canada indicated today that it had raised the Bank Rate by 1/4 of one percentage point to 3 1/2 per cent.

  Content Type(s): Press, Press releases
• June 18, 1997

  The Canadian economy: Challenges and prospects

  Remarks Gordon Thiessen la Chambre de commerce et d'industrie du Québec métropolitain Québec, Québec

  Once a year, the Bank of Canada's Board of Directors meets outside Ottawa, alternating among the provinces. I am delighted that this year's out-of-town meeting has brought us to the beautiful and historic city of Quebec. I would like to take this opportunity to talk to you about recent developments in our economy.

  Content Type(s): Press, Speeches and appearances, Remarks

• Canadian Policy Analysis Model: CPAM

  Staff Working Paper 1997-16 Richard Black, David Rose

  This paper documents the structure and properties of the Canadian Policy Analysis Model (CPAM). CPAM is designed to provide a reasonably complete representation of the Canadian macro economy.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models JEL Code(s): C, C5, C53, E, E1, E17

• The Effects of Budget Rules on Fiscal Performance and Macroeconomic Stabilization

  Staff Working Paper 1997-15 Jonathan Millar

  Budget rules can be defined as legislated or constitutional constraints on government deficits, taxes, expenditures, or debt. This paper reviews the budget rules recently legislated in six of Canada's provinces and both of its territories, as well as budget rules in other OECD countries.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Fiscal policy JEL Code(s): E, E6, E62, H, H3, H6, H61

• Menu Costs, Relative Prices, and Inflation: Evidence for Canada

  Staff Working Paper 1997-14 Robert Amano, Tiff Macklem

  The menu-cost models of price adjustment developed by Ball and Mankiw (1994;1995) predict that short-run movements in inflation should be positively related to the skewness and the variance of the distribution of disaggregated relative-price shocks in each period. We test these predictions on Canadian data using the distribution of changes in disaggregated producer prices to measure the skewness and standard deviation of relative-price shocks.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Monetary policy framework JEL Code(s): C, C5, C52, E, E3, E31

• What Does Downward Nominal-Wage Rigidity Imply for Monetary Policy?

  Staff Working Paper 1997-13 Seamus Hogan

  A recent paper has suggested there might be a trade-off between inflation and unemployment at low inflation rates and this has led some economists to recommend that Canada increase its inflation rate.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation targets, Monetary policy framework, Monetary policy transmission JEL Code(s): C, C5, C52, E, E2, E24, E5, E50
• May 30, 1997

  Flexible Exchange Rates in a World of Low Inflation

  Remarks Gordon Thiessen FOREX '97 Conference Toronto, Ontario

  There is a good deal of discussion these days about Economic and Monetary Union (EMU) in Europe - about the benefits and difficulties of organizing such a union. However, today I would like to examine a somewhat different issue, one that is at the other end of the spectrum; namely, How is the international system of flexible exchange rates working these days?

  Content Type(s): Press, Speeches and appearances, Remarks
• May 20, 1997

  Monetary Policy Report – May 1997

  Since the last Report, the Canadian economy has advanced broadly in line with expectations.

  Content Type(s): Publications, Monetary Policy Report