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Productivity, the Terms of Trade, and the Real Exchange Rate: The Balassa-Samuelson Hypothesis Revisited

Choudhri, Ehsan U.; Schembri, Lawrence L. - Bank of Canada - 2009

The paper examines how the Balassa-Samuelson hypothesis is affected by a modern variation of the standard model that allows product differentiation (within the traded and nontraded goods sectors) with the number of firms determined exogenously or endogenously. The hypothesis is found to be...

Persistent link: https://www.econbiz.de/10004976803

Nominal Rigidity, Desired Markup Variations, and Real Exchange Rate Persistence

Bouakez, Hafedh - Bank of Canada - 2002

Persistent link: https://www.econbiz.de/10005808283

Exchange Rate Pass-through and Monetary Policy: How Strong is the Link?

Murchison, Stephen - Bank of Canada - 2009

this phenomenon, which has been observed for several other countries, may be due to a change in the behaviour of inflation …. Specifically, moving from a high to a low-inflation environment has reduced the expected persistence of cost changes and, by … policy has responded more aggressively to inflation deviations over the low pass-through period relative to the high pass …

Persistent link: https://www.econbiz.de/10008517878

Currency Fluctuations, Liability Dollarization, and the Choice of Exchange Rate Regimes in Emerging Markets

Osakwe, Patrick N. - Bank of Canada - 2002

Persistent link: https://www.econbiz.de/10005226956

The Sensitivity of Producer Prices to Exchange Rates: Insights from Micro Data

Cao, Shutao; Dong, Wei; Tomlin, Ben - Bank of Canada - 2012

This paper studies the sensitivity of Canadian producer prices to the Canada-U.S. exchange rate. Using a unique product-level price data set, we estimate and analyze the impact of movements in the exchange rate on both domestic and export producer prices. First, we find that both domestic and...

Persistent link: https://www.econbiz.de/10010559416

Real Effects of Collapsing Exchange Rate Regimes: An Application to Mexico

Osakwe, Patrick; Schembri, Lawrence - Bank of Canada - 1999

This paper examines the impact of a collapsing exchange rate regime on output in an open economy in which shocks to capital flows and exports predominate. A sticky-price rational expectations model is used to compare the variability of output under the collapsing regime to that under alternative...

Persistent link: https://www.econbiz.de/10005673255

Real Exchange Rate Persistence in Dynamic General-Equilibrium Sticky-Price Models: An Analytical Characterization

Bouakez, Hafedh - Bank of Canada - 2003

This paper assesses analytically the ability of dynamic general-equilibrium sticky-price models to generate persistent real exchange rate fluctuations. It develops a tractable general-equilibrium model with Calvo-type price stickiness. The model has a closed-form solution and the persistence of...

Persistent link: https://www.econbiz.de/10005673369

Global Inflation Dynamics in the Post-Crisis Period: What Explains the Twin Puzzle?

Friedrich, Christian - Bank of Canada - 2014

Inflation dynamics in advanced countries have produced two consecutive puzzles during the years after the global … financial crisis. The first puzzle emerged when inflation rates over the period 2009-11 were consistently higher than expected … today - was initially observed in 2012, when inflation rates in advanced countries were weakening rapidly despite the …

Persistent link: https://www.econbiz.de/10010885041

Import Price Dynamics in Major Advanced Economies and Heterogeneity in Exchange Rate Pass-Through

Dees, Stephane; Burgert, Matthias; Parent, Nicolas - Bank of Canada - 2008

This paper aims at showing heterogeneity in the degree of exchange rate pass-through to import prices in major advanced economies at three different levels: 1) across destination markets; 2) across types of exporters (distinguishing developed economy from emerging economy exporters); and 3) over...

Persistent link: https://www.econbiz.de/10005162475

Markups in Canada: Have They Changed and Why?

Leung, Danny - Bank of Canada - 2008

effects of increasing import competition and lower inflation on the markup. This paper offers evidence on the evolution of the …

Persistent link: https://www.econbiz.de/10005256658