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...

This paper offers a new intrepretation of United States balance of payments adjustment in the bimetallic period from 1820 to 1860 during which President Jackson vetoed the charter renewal of the Second Bank of the United States--an event destined to spark controversy over the macroeconomic...

A theory is developed to explain the following two stylized facts now well known to international economists: first, countries' real and nominal exchange rates tend to move together under flexible exchange rate systems with the ratios of domestic to rest-of-world price levels showing much less...

This paper examines the effects on real exchange rates of exogenous money supply shocks. Such shocks are conventionally associated with monetary policy, although they may also arise from shifts in the desired reserve to deposit ratio of the banking system or in the public's desired currency to...

A theory is developed to explain a number of stylized facts well known to international economists: first, countries' real and nominal exchange rates tend to move together under flexible exchange rate systems with the ratios of domestic to rest-of-world price levels showing much less...