This paper examines the predictive content of the term structure of interest rates for economic activity in Canada. Recent papers for the United States and other countries find that the slope of the term structure is a very good predictor of output growth. We find a strong, positive relationship...

This paper finds evidence that, as for the United States , there exists an inverse relation between real stock returns and inflation i n Canada. Such a relation, if nonspurious, could signify a nonneutralit y of money. The authors' causality tests suggest, however, that inflation does not cause...