Monetary Commitment and the Level of Public Debt Staff working paper 2016-3 Stefano Gnocchi, Luisa Lambertini We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities. Content Type(s): Staff research, Staff working papers Research Topic(s): Credibility, Fiscal policy, Inflation targets, Monetary policy framework JEL Code(s): E, E2, E24, E3, E32, E5, E52 Research Theme(s): Financial markets and funds management, Funds management, Financial system, Financial stability and systemic risk, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation
The Role of the International Monetary Fund in the Post-Crisis World Staff discussion paper 2016-6 Mark Kruger, Robert Lavigne, Julie McKay The International Monetary Fund (IMF, or the Fund) has undergone a number of significant policy changes and reforms in the wake of the global financial crisis. Most notably, in December 2015, the United States approved long-delayed legislation to increase the representation of developing countries in the Fund’s governance structure. Content Type(s): Staff research, Staff discussion papers Research Topic(s): International topics JEL Code(s): F, F3, F33 Research Theme(s): Financial markets and funds management, International markets and currencies, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Structural challenges, International trade, finance and competitiveness
What Is Behind the Weakness in Global Investment? Staff discussion paper 2016-5 Maxime Leboeuf, Robert Fay The recovery in private business investment globally remains extremely weak more than seven years after the financial crisis. This paper contributes to the ongoing policy debate on the factors behind this weakness by analyzing the role of growth prospects and uncertainty in explaining developments in non-residential private business investment in large advanced economies since the crisis. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Business fluctuations and cycles, Central bank research, Domestic demand and components, Economic models, International topics, Monetary policy and uncertainty, Recent economic and financial developments JEL Code(s): C, C2, C23, C3, C33, D, D2, D24, D8, D80, D84, E, E2, E22, F, F0, F01, G, G3, G31 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting
New Housing Registrations as a Leading Indicator of the BC Economy Staff discussion paper 2016-3 Calista Cheung, Dmitry Granovsky Housing starts and building permits data are commonly used as leading indicators of economic activity. In British Columbia, all new homes must be registered with the Homeowner Protection Office, a branch of BC Housing, before the issuance of building permits and the start of construction. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Business fluctuations and cycles, Housing, Regional economic developments JEL Code(s): C, C1, C13, C5, C53, E, E3, E32, E37 Research Theme(s): Financial system, Household and business credit, Monetary policy, Real economy and forecasting
Agency Costs, Risk Shocks and International Cycles Staff working paper 2016-2 Marc-André Letendre, Joel Wagner We add agency costs as in Carlstrom and Fuerst (1997) into a two-country, two-good international business-cycle model. In our model, changes in the relative price of investment arise endogenously. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, International topics JEL Code(s): E, E2, E22, E3, E32, E4, E44, F, F4, F44 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Structural challenges, International trade, finance and competitiveness