This paper studies the joint dynamics of the Canadian economy in conjunction with US economic variables. The methodology employed is that of the structural vector error correction that combines unrestricted short-run dynamics with long- run restrictions derived from growth theory. Common trends,...

More than fifty years after the creation of the International Monetary Fund, the issue of appropriate exchange rate regimes for emerging economies is still controversial. Empirical studies suggest that these economies are borrowing constraint on the international financial markets. This paper...