Robert Lafrance - Latest

• Evaluating Alternative Measures of the Real Effective Exchange Rate

  Staff Working Paper 1998-20 Robert Lafrance, Patrick Osakwe, Pierre St-Amant

  This paper discusses the merits and shortcomings of alternative price indices used in constructing real effective exchange rate indices and examines the effects of different weighting schemes. It also compares selected measures of the real effective exchange rate in terms of their ability to explain movements in Canadian net exports and real output. The paper […]

  Content Type(s): Staff research, Staff working papers
• November 9, 1996

  Canada and international financial institutions

  Bank of Canada Review - Autumn 1996 Robert Lafrance, James Powell

  International financial institutions, such as the International Monetary Fund, the World Bank and the Bank for International Settlements, are important players in the global financial system. This article provides an overview of the major international financial institutions to which Canada belongs. The paper highlights their activities and the nature of Canada's involvement, including that of the Bank of Canada. Recent initiatives coming out of the Halifax and Lyon Summits to improve the effectiveness of international financial institutions are also noted.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics
• May 8, 1995

  Exchange rate fundamentals and the Canadian dollar

  Bank of Canada Review - Spring 1995 Robert Lafrance, Simon van Norden

  Views in the economic literature on the main factors that influence exchange rates have evolved over time in response to economic developments and new trends in economic theory. This article provides a brief interpretative survey of the main theories of exchange rate determination. The factors that influence exchange rate developments are varied and complex. However, the authors show that the broad movements of the Canada-U.S. real exchange rate since the early 1970s can be captured by a simple equation that highlights the role of commodity prices and Canada-U.S. interest rate differentials. The equation is used to interpret the evolution of the real exchange rate over the last two decades. At times, the real exchange rate deviates significantly from what the equation would predict. One explanation is that the equation omits certain factors that can influence the exchange rate, particularly in the short run. These may include fiscal policy variables, international indebtedness, political uncertainty, and investor sentiments—factors that are difficult to quantify but that have been particularly relevant in recent years.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rates
• June 1, 1994

  Summer 1994

  Mark Kruger, Robert Lafrance

  Canada's net external indebtedness increased from $110 billion in 1980 to $313 billion in 1993, reflecting the accumulation of current account deficits over many years.

  Content Type(s): Publications, Bank of Canada Review articles