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In the new situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates. One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short...
Persistent link: https://www.econbiz.de/10013214576
We present a model that shows that exchange rate pass-through is likely to be substantially altered when firms face antidumping (AD) duties and that optimal pass-through of AD duties may be up to 200 percent. We examine both pass-through issues using monthly prices across 345 U.S.- imported...
Persistent link: https://www.econbiz.de/10013214588
countries such as the US, Canada, and Japan. Attempts are made to carry out the measurement based both on the accounting records … depreciation and before taxes is found to fluctuate around 10-11% without a persistent trend. For Canada, the indivi- dual company … Canada supple- mented by some unpublished data supplied by Statistics Canada suggest that the cost of capital in Canada is …
Persistent link: https://www.econbiz.de/10013249360
For more than a decade, the United States and Canada have been engaged in a rancorous dispute over trade in softwood … industry has sought to have countervailing duties imposed upon Canadian lumber imports. The U.S. interests argue that Canada … economy are tested. Capture Theory de-emphasizes the role of institutional settings of the kind at work here: The outcomes of …
Persistent link: https://www.econbiz.de/10013310225
Can macroprudential foreign exchange (FX) regulations on banks reduce the financial and macroeconomic vulnerabilities created by borrowing in foreign currency? To evaluate the effectiveness and unintended consequences of macroprudential FX regulations, we develop a parsimonious model of bank and...
Persistent link: https://www.econbiz.de/10012910619
Family-controlled pyramidal business groups were important in Canada early in the 20th century, amid rapid catch …
Persistent link: https://www.econbiz.de/10013011941
This paper investigates whether oil prices have a reliable and stable out-of-sample relationship with the Canadian/U.S dollar nominal exchange rate. Despite state-of-the-art methodologies, we find little systematic relation between oil prices and the exchange rate at the monthly and quarterly...
Persistent link: https://www.econbiz.de/10013107723
policies of an actual central bank, the Bank of Canada. Finally, the paper considers the role of fiscal policy in an open …
Persistent link: https://www.econbiz.de/10013157763
This paper revisits Canada's pioneering experience with floating exchange rate over the period 1950-1962. It examines … whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open … that monetary policy was more volatile in the post-1957 period and Canada's macroeconomic performance suffered as a result …
Persistent link: https://www.econbiz.de/10012759691
The paper characterizes predictable components in excess rates of returns on major equity and foreign exchange markets using lagged excess returns, dividend yields, and forward premiums as instruments. Vector autoregressive techniques demonstrate one-step-ahead predictability and provide implied...
Persistent link: https://www.econbiz.de/10012767709