This paper demonstrates, using weekly data between 1976 and 1979, that unanticipated changes in the Canadian money supply exerted a significant impact on the foreign exchange and bond markets during the first years of the Bank of Canada's policy of targeting M1 growth. This finding, which is...

The author investigates the forecasting performance of a number of simple prediction techniques for short-term interest rates. In particular, quarterly forecasts of Canadian three-month T-bill rates, from one to forty quarters in the future, are generated during 1963-92 using several time-series...