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...

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...

Since the abandonment of monetary targeting by the Central Banks of major industrial nations, McCallum's rule has attracted renewed attention in the macroeconomic literature. Both McCallum and his critics have investigated the stabilizing properties of the rule and its robustness across regimes...

It is often argued that risk-sharing employment relationships provide a better description of labour relations than the standard Walrasian framework. Such relationships have been introduced in macroeconomic models under an assumption of full commitment. In the absence of commitment, however,...

In this paper, the neutrality hypothesis is tested for the U.S. Great Depression. Neutrality is generally rejected by the data even when banking failures are excluded from the available information set in generating the anticipated rate of growth of money series. Hence our results are contrary...

Even though the Canadian Great Depression was one of the worst in the Western World, there are no recent articles where the phenomenon is analyzed as a whole. In this paper, the Interwar business cycles are analyzed in the context of a macroeconomic model with monthly data. The model features...

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...

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...