October 27, 2015 Inflation Targeting—A Matter of Time Remarks Timothy Lane CFA Society Atlantic Canada Halifax, Nova Scotia Deputy Governor Tim Lane discusses monetary policy decision making and how the Bank assesses the underlying trend in inflation. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Econometric and statistical methods, Exchange rates, Inflation and prices, Inflation targets, Monetary and financial indicators, Monetary policy framework
An Update - Canadian Non-Energy Exports: Past Performance and Future Prospects Staff Discussion Paper 2015-10 André Binette, Daniel de Munnik, Julie Melanson In light of the fact that Canada was continuing to lose market share in the United States, Binette, de Munnik and Gouin-Bonenfant (2014) studied 31 Canadian non-energy export (NEX) categories to assess their individual performance. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Balance of payments and components, Exchange rates, International topics JEL Code(s): F, F1, F10, F14, F4, F43
Exchange Rate Pass-Through to Consumer Prices: Theory and Recent Evidence Staff Discussion Paper 2015-9 Laurence Savoie-Chabot, Mikael Khan In an open economy such as Canada’s, exchange rate movements can have a material impact on consumer prices. This is particularly important in the current context, with the significant depreciation of the Canadian dollar vis-a-vis the U.S. dollar since late 2012. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Exchange rates, Inflation and prices JEL Code(s): E, E3, E31, E5, E52, F, F3, F31
Exchange Rate Pass-Through, Currency of Invoicing and Market Share Staff Working Paper 2015-31 Michael Devereux, Wei Dong, Ben Tomlin This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market—that is, exporting firms and importing firms. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Inflation and prices, Market structure and pricing JEL Code(s): F, F3, F4
A Wake-Up-Call Theory of Contagion Staff Working Paper 2015-14 Christoph Bertsch, Toni Ahnert We propose a novel theory of financial contagion. We study global coordination games of regime change in two regions with an initially uncertain correlation of regional fundamentals. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Financial stability, International financial markets JEL Code(s): D, D8, D82, F, F3, G, G0, G01
November 13, 2014 The Use of Financial Derivatives by Canadian Firms Bank of Canada Review - Autumn 2014 Teodora Paligorova, Rhonda Staskow In Canada, about one-third of publicly listed non-financial firms use financial derivatives. The use of derivatives is widespread across all sectors of the economy and increases during periods of greater uncertainty. Non-financial firms that use derivatives are typically larger and more profitable and have lower volatility of earnings than those that do not use derivatives. Overall, the firm characteristics of Canadian hedgers seem to be consistent with those found in other jurisdictions. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Exchange rates, Financial markets JEL Code(s): G, G1, G10, G3, G32
Canadian Non-Energy Exports: Past Performance and Future Prospects Staff Discussion Paper 2014-1 André Binette, Daniel de Munnik, Émilien Gouin-Bonenfant Canada has continued to lose market share in the United States since the Great Recession, beyond what our bilateral competitiveness measures (relative unit labour costs) would suggest. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Balance of payments and components, Exchange rates JEL Code(s): F, F1, F10, F14, F4, F43
Endogenous Trade Participation with Incomplete Exchange Rate Pass-Through Staff Working Paper 2013-30 Yuko Imura This paper investigates the implications of endogenous trade participation for international business cycles, trade flow dynamics and exchange rate pass-through when price adjustments are staggered across firms. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Exchange rates, International topics JEL Code(s): F, F1, F12, F4, F44
The Evolution of Canada’s Global Export Market Share Staff Working Paper 2012-31 Daniel de Munnik, Jocelyn Jacob, Wesley Sze Following gains during the 1990s, Canada’s global market share of goods exports has declined markedly in recent years. In this regard, the constant market share analysis framework is used to decompose changes in Canada’s global market share into competitiveness and structural effects over the 1990‐2010 period, as well as to draw some comparisons to a number of other countries. Content Type(s): Staff research, Staff working papers Research Topic(s): Balance of payments and components, Exchange rates, International topics JEL Code(s): F, F1, F10, F14, F4, F43
The Sensitivity of Producer Prices to Exchange Rates: Insights from Micro Data Staff Working Paper 2012-20 Shutao Cao, Wei Dong, Ben Tomlin This paper studies the sensitivity of Canadian producer prices to the Canada-U.S. exchange rate. Using a unique product-level price data set, we estimate and analyze the impact of movements in the exchange rate on both domestic and export producer prices. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rates, Inflation and prices, Market structure and pricing JEL Code(s): E, E3, E30, F, F3, F31, F4, F41, L, L1, L11