This paper can be seen as a contribution to a growing literature initiated by Bernanke and Blinder (1988, 1992) which have examined the role played by the banking system in the transmission of monetary policy. We propose to study the dynamic behaviour of the balance sheet of Canadian chartered...

Starting in 1988, the Bank of Canada has adopted price stability as its sole long-run objective. In this paper, we critically assess the policy actions effectively undertaken in light of this objective. Instead of using the so-called monetary conditions (interest rates and the exchange rate), we...

Lors du trimestre d’été 2004, une quarantaine d’étudiants du programme de B.A.A. de HEC Montréal se sont inscrits à un cours de politique économique de deuxième année donné sous un format en ligne à distance. La formule pédagogique retenue qui ne nécessitait aucune présence en...

Using Kalman filtering and dynamic factor analysis, we decompose fluctuations in real aggregate output, consumption, and investment for the G7 countries into factors that are (i) common across all countries and aggregates, (ii) common across aggregates within a country, and (iii) specific to...

Canadian economists have devoted some attention to the study of regional cycles. In the Quebec-Ontario case, the "wid ening" hypothesis has emerged as the empirical consensus: this hypot hesis states that the gap between the two regional economies increase s in a recessionary period. This paper...

In this paper, we estimate a fully optimized BVAR model of the Canadian economy for the period 1971-87. The model is well-adapted to the features of a small open economy. We show how it can be used as an input in the monetary policy process either as a forecasting instrument or an analytical...