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Why Do Emerging Markets Liberalize Capital Outflow Controls? Fiscal versus Net Capital Flow Concerns
Aizenman, Joshua; Pasricha, Gurnain - Bank of Canada - 2013
In this paper, we provide empirical evidence on the factors that motivated emerging economies to change their capital outflow controls in recent decades. Liberalization of capital outflow controls can allow emerging-market economies (EMEs) to reduce net capital inflow (NKI) pressures, but may...
Persistent link: https://www.econbiz.de/10010849944
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The Neutral Rate of Interest in Canada
Mendes, Rhys R. - Bank of Canada - 2014
A measure of the neutral policy interest rate can be used to gauge the stance of monetary policy. We define the neutral rate as the real policy rate consistent with output at its potential level and inflation equal to target after the effects of all cyclical shocks have dissipated. This is a...
Persistent link: https://www.econbiz.de/10010960403
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Money Market Rates and Retail Interest Regulation in China: The Disconnect between Interbank and Retail Credit Conditions
Porter, Nathan; Xu, TengTeng - Bank of Canada - 2013
Interest rates in China are composed of a mix of both market-determined interest rates (interbank rates and bond yields), and regulated interest rates (retail lending and deposit rates), reflecting China’s gradual process of interest rate liberalization. This paper investigates the main...
Persistent link: https://www.econbiz.de/10010670841
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Heterogeneous beliefs and housing-market boom-bust cycles in a small open economy
Tomura, Hajime - 2009
This paper introduces heterogeneous beliefs among households in a small open economy model for the Canadian economy. The model suggests that simultaneous boom-bust cycles in house prices, output, investment, consumption and hours worked emerge when credit-constrained mortgage borrowers expect...
Persistent link: https://www.econbiz.de/10003852849
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Risk premium shocks and the zero bound on nominal interest rates
Amano, Robert A.; Shukayev, Malik - 2009
. Without denying the possibility of other factors, we find that risk premium shocks are key to building quantitative models … where the zero bound is relevant for monetary policy design. The risk premium mechanism operates by increasing the spread … between the rates of return on private capital and risk-free government bonds. Other common shocks, such as aggregate …
Persistent link: https://www.econbiz.de/10003933335
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The Canadian Macroeconomy and the Yield Curve: An Equilibrium-Based Approach
Garcia, René; Luger, Richard - Bank of Canada - 2005
The authors develop and estimate an equilibrium-based model of the Canadian term structure of interest rates. The proposed model incorporates a vector-autoregression description of key macroeconomic dynamics and links them to those of the term structure, where identifying restrictions are based...
Persistent link: https://www.econbiz.de/10005673296
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Household Risk Management and Actual Mortgage Choice in the Euro Area
Ehrmann, Michael; Ziegelmeyer, Michael - Bank of Canada - 2014
household risk management: income volatility reduces the take-out of ARMs, while increasing duration and relative size of the …
Persistent link: https://www.econbiz.de/10010762046
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The Zero Bound on Nominal Interest Rates: Implications for the Optimal Monetary Policy in Canada
Lavoie, Claude; Pioro, Hope - Bank of Canada - 2007
The authors assess the performance of the Canadian economy under a variety of interest rate rules when the zero bound on nominal interest rates can bind. Their assessment is based on numerical simulations of a dynamic stochastic general-equilibrium model in a stochastic environment. Consistent...
Persistent link: https://www.econbiz.de/10005162377
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Central Bank Communications Before, During and After the Crisis: From Open-Market Operations to Open-Mouth Policy
Vayid, Ianthi - Bank of Canada - 2013
The days when secrecy and opacity were the bywords of central banking are gone. The advent of inflation targeting in the early 1990s acted as the catalyst for enhanced transparency and communications in the conduct of monetary policy. In the wake of the 2007-09 global financial crisis, this...
Persistent link: https://www.econbiz.de/10010849959
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International Transmission Channels of U.S. Quantitative Easing: Evidence from Canada
Dahlhaus, Tatjana; Hess, Kristina; Reza, Abeer - Bank of Canada - 2014
The U.S. Federal Reserve responded to the great recession by reducing policy rates to the effective lower bound. In order to provide further monetary stimulus, they subsequently conducted large-scale asset purchases, quadrupling their balance sheet in the process. We assess the international...
Persistent link: https://www.econbiz.de/10010960398