This paper discusses policies that monetary policy authorities could implement in response to a generalized and persistent decline in goods and services prices. The authors argue that in such situation the priority should be to defend the credibility of monetary policy. They differentiate...

Causality analysis in the sense of Wiener-Granger are usually based on a vector autoregressive (VAR) specification of the data-generating process. This is the case in particular for the numerous studies of causality between money and income in macro-economics. Since a VAR specification is...

This paper explores the extent to which factors other than commodity and energy prices may have contributed to the Canadian dollar's depreciation since the early 1970s. The variables considered include among others budgetary conditions and productivity. The approach involves a long-term...

The authors examine simultaneously the causal links connecting monetary policy variables, real activity, and stock returns. Their interest lies in the fact that the dynamics of asset prices can provide key insights--in terms of information--for the conduct of monetary policy, since asset prices...

We don't have an abstract yet, sorry. But I think the title is pretty descriptive.

In this article, we discuss the recent literature analyzing the experience of countries having adopted inflation targets and provide some simple statistical tests for determining the link between the adoption of inflation targets and the credibility of monetary policy. The literature survey and...

The authors identify the fundamentals behind the dynamics of the U.S. stock market over the past 30 years. They specify a structural vector-error-correction model following the methodology of King, Plosser, Stock, and Watson (1991). This methodology identifies structural shocks with the...

A distinguishing feature of macro stress testing exercises is the use of macroeconomic models in scenario design and implementation. It is widely agreed that scenarios should be based on "rare but plausible" events that have either resulted in vulnerabilities in the past or could do so in the...