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This paper examines the proposition that tight money anti-inflation policy by the Bank of Canada has kept Canadian interest rates high relative to interest rates in the United States during the past few years. It adopts an analytical framework that emphasizes the integration of Canadian asset...
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A Theoretical Framework -- Specifications and Assumptions -- Underlying Equilibrium Growth Paths -- Variations in Employment -- Some Important Implications -- Exchange Rate Overshooting -- Exchange Rate Determination -- Issues Regarding Exchange Rate Determination -- Time Series Properties of...
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