Posts
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Housing Market Cycles and Duration Dependence in the United States and Canada
Housing wealth is a large component of total wealth and plays an important role in aggregate business cycles. In this paper, we explore data on real house price cycles at the aggregate level and city level for the United States and Canada. -
February 15, 2018
Anchoring Expectations: Canada’s Approach to Price Stability
Deputy Governor Lawrence Schembri examines the success of the Bank’s monetary policy framework and explains the review being undertaken before its renewal in 2021. -
On the Value of Virtual Currencies
This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency. -
December 21, 2007
Financial System Review - December 2007
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. -
January 7, 2016
Mayor’s Breakfast Series - Press Conference (Audio)
Life After Liftoff: Divergence and U.S. Monetary Policy Normalization - Stephen S. Poloz, the Governor of the Bank of Canada, speaks at the Mayor’s Breakfast Series, organized by the Ottawa Business Journal and the Ottawa Chamber of Commerce.
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January 29, 2001
Annual Report 2000
The Canadian economy continued to expand robustly in 2000 while inflation remained low. -
Financial Factors and Labour Market Fluctuations
What are the effects of financial market imperfections on unemployment and vacancies? Since standard DSGE models do not typically model unemployment, they abstract from this issue. -
Une approche éclectique d'estimation du PIB potentiel pour le Royaume-Uni
The author describes results obtained by using a new methodology to estimate potential output for the United Kingdom. -
May 13, 1998
Canada-U.S. long-term interest differentials in the 1990s
Long-term Canada-U.S. interest spreads have changed remarkably during the 1990s. The unusually wide spreads of the first half of the decade have given way to an unprecedented run of negative yield differentials. In this article, the author examines the conceptual aspects of yields on international assets and their application to the Canada-U.S. situation. Prior to 1995, investors were unsure that, over the long run, inflation would meet the targets set by the government and the Bank. Policy credibility was undermined by large budget deficits and political uncertainty. In the second half of the decade, confidence was re-established as the fiscal positions of governments improved, long-run price stability became established, and political concerns about Quebec lessened. As long as these fundamentals hold, long-term rates should remain relatively low, even when short-term rates rise.