Exchange rate regimes - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T13:06:45+00:00Foreign Exchange Interventions: The Long and the Short of It
https://www.bankofcanada.ca/2022/06/staff-working-paper-2022-25/
This paper studies the effects of foreign exchange (FX) interventions in a two-region model where governments issue both short- and long-term bonds. We find that the term premium channel dominates the trade balance channel in our calibrated model. As a result, the conventional beggar-thy-neighbor effects of interventions are overturned.2022-06-06T15:10:58+00:00enForeign Exchange Interventions: The Long and the Short of It2022-06-06Business fluctuations and cyclesExchange rate regimesExchange ratesForeign reserves managementInternational financial marketsInternational topicsStaff Working Paper 2022-25https://www.bankofcanada.ca/wp-content/uploads/2022/06/swp2022-25.pdfForeign Exchange Interventions: The Long and the Short of ItPatrick AlexanderSami AlpandaSerdar KabacaJune 2022FF3F31F33F4F41Exports and the Exchange Rate: A General Equilibrium Perspective
https://www.bankofcanada.ca/2022/04/staff-working-paper-2022-18/
How do a country’s exports change when its currency depreciates? Does it matter which forces drive the exchange rate deprecation in the first place? We find that this relationship varies greatly depending on what drives exchange rate movements, and we conclude that the direct relationship between the exchange rate and exports is weak for Canada.2022-04-04T14:42:27+00:00enExports and the Exchange Rate: A General Equilibrium Perspective2022-04-04Balance of payments and componentsBusiness fluctuations and cyclesExchange rate regimesExchange ratesInternational topicsMonetary policy transmissionTrade integrationStaff Working Paper 2022-18https://www.bankofcanada.ca/wp-content/uploads/2022/04/swp2022-18.pdfExports and the Exchange Rate: A General Equilibrium PerspectivePatrick AlexanderAbeer RezaApril 2022FF3F31F32F33F4F41Monetary Policy and Redistribution in Open Economies
https://www.bankofcanada.ca/2022/02/staff-working-paper-2022-6/
We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.2022-02-07T08:54:58+00:00enMonetary Policy and Redistribution in Open Economies2022-02-07Exchange rate regimesMonetary policyStaff Working Paper 2022-6https://www.bankofcanada.ca/wp-content/uploads/2022/02/swp2022-6.pdfStaff Working Paper 2022-6Xing GuoPablo OttonelloDiego PerezFebruary 2022EE3E32E5E52FF4F41F44Revisiting the Monetary Sovereignty Rationale for CBDCs
https://www.bankofcanada.ca/2021/12/staff-discussion-paper-2021-17/
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.2021-12-17T14:28:05+00:00enRevisiting the Monetary Sovereignty Rationale for CBDCs2021-12-17Debt managementDigital currencies and fintechExchange rate regimesFinancial stabilityMonetary policyStaff Discussion Paper 2021-17https://www.bankofcanada.ca/wp-content/uploads/2021/12/sdp2021-17.pdfRevisiting the Monetary Sovereignty Rationale for CBDCsSkylar BrooksDecember 2021EE4E41E42E5E52E58HH1H12H6H63The long and short of it: A balanced vision for the international monetary and financial system
https://www.bankofcanada.ca/2021/10/long-and-short-balanced-vision-international-monetary-financial-system/
Governor Tiff Macklem advocates for global coordination to strengthen the international monetary and financial system.2021-10-07T12:00:21+00:00The long and short of it: A balanced vision for the international monetary and financial system2021-10-07Tiff MacklemInvesting in global progress
https://www.bankofcanada.ca/2021/10/investing-in-global-progress/
Governor Tiff Macklem makes the case for greater cooperation to shape a stronger international monetary and financial system.2021-10-07T10:55:30+00:00Investing in global progress2021-10-07Tiff MacklemFiscal Spillovers: The Case of US Corporate and Personal Income Taxes
https://www.bankofcanada.ca/2021/08/staff-working-paper-2021-41/
How do changes to personal and corporate income tax rates in the United States affect its trading partners? Spillover effects from cuts in the two taxes differ. They are generally small and negative for corporate taxes, but sizable and positive for personal income taxes.2021-08-20T13:04:07+00:00enFiscal Spillovers: The Case of US Corporate and Personal Income Taxes2021-08-20Business fluctuations and cyclesEconometric and statistical methodsExchange rate regimesFiscal policyInternational topicsStaff Working Paper 2021-41https://www.bankofcanada.ca/wp-content/uploads/2021/08/swp2021-41.pdfMadeline HansonDaniela HauserRomanos PriftisAugust 2021EE3E32E6E62FF4F44HH2H20Monetary Policy Independence and the Strength of the Global Financial Cycle
https://www.bankofcanada.ca/2020/06/staff-working-paper-2020-25/
We propose a new strength measure of the global financial cycle by estimating a regime-switching factor model on cross-border equity flows for 61 countries. We then assess how the strength of the global financial cycle affects monetary policy independence, which is defined as the response of central banks' policy interest rates to exogenous changes in inflation.2020-06-10T11:42:33+00:00enMonetary Policy Independence and the Strength of the Global Financial Cycle2020-06-10Business fluctuations and cyclesExchange rate regimesFinancial system regulation and policiesInternational financial marketsMonetary policyStaff Working Paper 2020-25https://www.bankofcanada.ca/wp-content/uploads/2020/06/swp2020-25.pdfMonetary Policy Independence and the Strength of the Global Financial CycleChristian FriedrichPierre GuérinDanilo Leiva-LeonJune 2020EE4E5FF3F32F4F42GG1G15G18Flexible Exchange Rates, Commodity Prices and Price Stability
https://www.bankofcanada.ca/2019/06/flexible-exchange-rates-commodity-prices-and-price-stability/
Deputy Governor Lawrence Schembri speaks before the Economics Society of Northern Alberta (ESNA).2019-06-17T14:30:14+00:00Flexible Exchange Rates, Commodity Prices and Price Stability2019-06-17Lawrence L. SchembriThe merits of a floating exchange rate
https://www.bankofcanada.ca/2019/06/merits-of-a-floating-exchange-rate/
Deputy Governor Lawrence Schembri explains how Canada’s monetary policy framework—inflation targeting underpinned by a flexible exchange rate—has proved to be the most durable in the post-war period.2019-06-17T14:30:04+00:00The merits of a floating exchange rate2019-06-17Lawrence L. Schembri