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The Macroeconomic Effects of Non-Zero Trend Inflation

Amano, Robert; Ambler, Steve; Rebei, Nooman - Bank of Canada - 2006

The authors study the macroeconomic effects of non-zero trend inflation in a simple dynamic stochastic general-equilibrium model with sticky prices. They show that trend inflation leads to a substantial reduction in the stochastic means of output, consumption, and employment. It also leads to an...

Persistent link: https://www.econbiz.de/10005673258

Trends in U.S. Hours and the Labor Wedge

Cociuba, Simona E.; Ueberfeldt, Alexander - Bank of Canada - 2010

From 1980 until 2007, U.S. average hours worked increased by thirteen percent, due to a large increase in female hours. At the same time, the U.S. labor wedge, measured as the discrepancy between a representative household’s marginal rate of substitution between consumption and leisure and the...

Persistent link: https://www.econbiz.de/10008694041

Working Time over the 20th Century

Ueberfeldt, Alexander - Bank of Canada - 2006

From 1870 to 2000, the workweek length of employed persons decreased by 41 per cent in industrialized countries. The employment rate, employment per working age person, displays large movements but no clear secular pattern. This motivated the question: What accounts for the large decrease in the...

Persistent link: https://www.econbiz.de/10005162501

Business Cycle Effects of Credit Shocks in a DSGE Model with Firm Defaults

Pesaran, M. Hashem; Xu, TengTeng - Bank of Canada - 2013

This paper proposes a theoretical framework to analyze the relationship between credit shocks, firm defaults and volatility, and to study the impact of credit shocks on business cycle dynamics. Firms are identical ex ante but differ ex post due to different realizations of firm-specific...

Persistent link: https://www.econbiz.de/10010849962

A Policy Model to Analyze Macroprudential Regulations and Monetary Policy

Alpanda, Sami; Cateau, Gino; Meh, Césaire - Bank of Canada - 2014

We construct a small-open-economy, New Keynesian dynamic stochastic general-equilibrium model with real-financial linkages to analyze the effects of financial shocks and macroprudential policies on the Canadian economy. Our model has four key features. First, it allows for non-trivial...

Persistent link: https://www.econbiz.de/10010849963

On the Importance of Sales for Aggregate Price Flexibility

Kryvtsov, Oleksiy; Vincent, Nicolas - Bank of Canada - 2014

Macroeconomists have traditionally ignored the behavior of temporary price markdowns (“sales”) by retailers. Although sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered out. We challenge this view. First, using the...

Persistent link: https://www.econbiz.de/10010960391

The Macroeconomic Implications of Changes in Bank Capital and Liquidity Requirements in Canada: Insights from the BoC-GEM-FIN

Resende, Carlos de; Dib, Ali; Perevalov, Nikita - Bank of Canada - 2010

The authors use simulations within the BoC-GEM-FIN, the Bank of Canada’s version of the Global Economy Model with financial frictions in both the demand and supply sides of the credit market, to investigate the macroeconomic implications of changing bank regulations on the Canadian economy....

Persistent link: https://www.econbiz.de/10009323067

Financial Frictions, Financial Shocks and Labour Market Fluctuations in Canada

Zhang, Yahong - Bank of Canada - 2011

What are the effects of financial market imperfections on unemployment and vacancies in Canada? The author estimates … vacancies observed in the data. She also finds that financial shocks are one of the main sources of fluctuations in the Canadian … labour market. Overall, financial shocks contribute about 30 per cent of the fluctuations in unemployment and vacancies for …

Persistent link: https://www.econbiz.de/10009395394

On Fiscal Multipliers: Estimates from a Medium Scale DSGE Model

Zubairy, Sarah - Bank of Canada - 2010

This paper contributes to the debate on fiscal multipliers, in the context of a structural model. I estimate a micro-founded dynamic stochastic general equilibrium model, that features a rich fiscal policy block and a transmission mechanism for government spending shocks, using Bayesian...

Persistent link: https://www.econbiz.de/10008740311

Countercyclical Bank Capital Requirement and Optimized Monetary Policy Rules

Resende, Carlos De; Dib, Ali; Lalonde, René; … - Bank of Canada - 2013

Using BoC-GEM-Fin, a large-scale DSGE model with real, nominal and financial frictions featuring a banking sector, we explore the macroeconomic implications of various types of countercyclical bank capital regulations. Results suggest that countercyclical capital requirements have a significant...

Persistent link: https://www.econbiz.de/10010635681