Are Canadian Interest Rates Too High?
AbstractThis 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 markets with those abroad--a different perspective from that on which most contemporary policy discussions are based. On the basis of available evidence it concludes that this proposition is very difficult to defend. It also argues that, due to the problems of forecasting both future movements in the economy and the magnitude and timing of the Bank's influence on it, aggressive expansionary policies in recessions like this most recent one would probably do more harm than good.
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Bibliographic InfoArticle provided by University of Toronto Press in its journal Canadian Public Policy.
Volume (Year): 21 (1995)
Issue (Month): 2 (June)
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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
Web page: http://economics.ca/cpp/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John E. Floyd, 1998. "Monetary Policy and the Real Exchange Rate: Some Evidence," Working Papers floyd-98-02, University of Toronto, Department of Economics.
- Frankel, Jeffrey A & Rockett, Katharine E, 1988. "International Macroeconomic Policy Coordination When Policymakers Do Not Agree on the True Model," American Economic Review, American Economic Association, vol. 78(3), pages 318-40, June.
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NBER Working Papers
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- Bolbol, Ali A., 1999. "Seigniorage, Dollarization and Public Debt: The Lebanese Civil War and Recovery Experience, 1982-97," World Development, Elsevier, vol. 27(10), pages 1861-1873, October.
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