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This paper analyses a stochastic international growth model with money and country-specific forcing processes for productivity and money growth rates. Monies are required, owing to cash-in-advance constraints for consumption goods, but the liquidity constraints need not be binding for all...
Persistent link: https://www.econbiz.de/10013119756
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
identify the two economies in my model with Canada - a small open economy - and the United States - taken as an approximation … transmitted to Canada under an inflation-targeting monetary regime …
Persistent link: https://www.econbiz.de/10012735704
Under a flexible inflation targeting regime, should policymakers avoid any reaction to movements in the foreign exchange market? Using data for six advanced open economies explicitly targeting inflation, the paper examines empirically whether real exchange rate disequilibria systematically...
Persistent link: https://www.econbiz.de/10012780739
What is the impact of fiscal policy shocks on key macroeconomic variables in Canada? This question triggered renewed … interest in the aftermath of the 2008-09 Great Recession. Indeed, as in many advanced economies, fiscal policy in Canada … explicitly accounts for spillovers from the U.S., Canada's main trading partner, and for oil price fluctuations. The findings …
Persistent link: https://www.econbiz.de/10012969405
coordination. In this study several tests are applied to the money demand functions of Japan, Germany, Canada, France, and Italy in …
Persistent link: https://www.econbiz.de/10013006313
We run a real exchange rate forecasting "horse race", which highlights that two principles hold. First, forecasts should not replicate the high volatility of exchange rates observed in sample. Second, models should exploit the mean reversion of the real exchange rate over long horizons. Abiding...
Persistent link: https://www.econbiz.de/10012988876