Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
172
result(s)
Productivity, the Terms of Trade, and the Real Exchange Rate: The Balassa-Samuelson Hypothesis Revisited
Staff Working Paper 2009-22
Ehsan U. Choudhri,
Lawrence L. Schembri
The paper examines how the Balassa-Samuelson hypothesis is affected by a modern variation of the standard model that allows product differentiation (within the traded and nontraded goods sectors) with the number of firms determined exogenously or endogenously.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Productivity
JEL Code(s):
F,
F3,
F31,
F4,
F41
Canada and the IMF: Trailblazer or Prodigal Son?
Staff Discussion Paper 2009-1
Michael Bordo,
Lawrence L. Schembri,
Tamara Gomes
Canada played an important role in the postwar establishment of the International Monetary Fund (IMF), yet it was also the first major member to challenge the orthodoxy of the BrettonWoods par value system by abandoning it in 1950 in favour of a floating, market-determined exchange rate.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Exchange rate regimes,
Exchange rates,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58,
F,
F4,
F41,
F5,
F55,
N,
N7,
N72
November 11, 2008
The Role of Dealers in Providing Interday Liquidity in the Canadian-Dollar Market
Access to information about the future direction of the exchange rate can be extremely valuable in the foreign exchange market. Evidence presented in this article suggests that Canadian dealers are more likely to provide interday liquidity to foreign, rather than Canadian, financial customers, since foreign financial flows can be more informative about future movements in the exchange rate. The author reveals a statistical relationship between the supply of liquidity provided by non-financial firms and that provided by dealing institutions across time, and across markets, and suggests that the relationship between the positions of commercial clients and market-makers, and the role played by dealers in interday liquidity provision, has been understated in the market microstructure literature.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Exchange rates,
Financial institutions,
Financial markets,
Market structure and pricing
The Role of Foreign Exchange Dealers in Providing Overnight Liquidity
Staff Working Paper 2008-44
Chris D'Souza
This paper illustrates that dealers in foreign exchange markets not only provide intraday liquidity, they are key participants in the provision of overnight liquidity. Dealing institutions receive compensation for holding undesired inventory balances in part from the information they receive in customer trades.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Financial markets,
Market structure and pricing
JEL Code(s):
D,
D8,
D82,
F,
F3,
F31,
G,
G2,
G21
McCallum Rules, Exchange Rates, and the Term Structure of Interest Rates
Staff Working Paper 2008-43
Antonio Diez de los Rios
McCallum (1994a) proposes a monetary rule where policymakers have some tendency to resist rapid changes in exchange rates to explain the forward premium puzzle.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Interest rates,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
F,
F3,
F31,
G,
G1,
G12,
G15
The Canadian Dollar and Commodity Prices: Has the Relationship Changed over Time?
Staff Discussion Paper 2008-15
Philipp Maier,
Brian DePratto
The authors examine the impact of the recent run-up in energy and non-energy commodity prices on the Canadian dollar. Using the Bank of Canada's exchange rate equation, they find that the differences between the actual value of the Canadian exchange rate and the simulated values observed in 2007 are not historically large. Still, given that […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Exchange rates
JEL Code(s):
F,
F3,
F31
Import Price Dynamics in Major Advanced Economies and Heterogeneity in Exchange Rate Pass-Through
Staff Working Paper 2008-39
Stephane Dees,
Matthias Burgert,
Nicolas Parent
This paper aims at showing heterogeneity in the degree of exchange rate pass-through to import prices in major advanced economies at three different levels: 1) across destination markets; 2) across types of exporters (distinguishing developed economy from emerging economy exporters); and 3) over time.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
F,
F3,
F4,
F41
Do Central Banks Respond to Exchange Rate Movements? Some New Evidence from Structural Estimation
Staff Working Paper 2008-24
Wei Dong
This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
International topics,
Monetary policy framework
JEL Code(s):
F,
F3,
F4
June 19, 2008
China's Integration into the Global Financial System
Despite having the world's largest GDP when measured in terms of purchasing-power parities, the third-largest share in world exports, and the world's largest foreign exchange reserves, China has only a minor role in the global financial system. Its banks have a modest international presence; China's currency, the renminbi, is virtually not used outside the country; and Chinese capital markets are not a significant source of financing for foreign borrowers. China's modest level of integration into the global financial system is explained by the emphasis given to domestic policy priorities. As the Chinese economy matures, and as reforms strengthen the domestic financial system, China will become more important in global financial markets. Changes are already occurring as China's financial might is being channeled towards overseas investments, and the authorities have committed to greater exchange rate flexibility. These changes will facilitate integration into the global financial system. In this article, the authors describe the current situation and speculate on the future evolution of Chinese financial institutions and markets.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Exchange rate regimes,
Financial markets,
International topics