The Impact of the Global Crisison Canada
AbstractThis paper builds a Bayesian VAR estimation model of growth for Canada, by focusing specifically on the role of external and domestic financial indicators, including credit conditions. A variance decomposition shows that financial conditions explain one-third of the total variability in Canada''s real GDP growth, although changes in U.S. real GDP growth still account for a larger share of volatility in Canadian growth. A macro-financial conditions index built from the VAR''s impulse responses shows that U.S. real GDP growth and lending standards will increasingly bear on Canada''s growth, implying that a normalization of the U.S. economic and financial conditions is key for a sustained recovery in Canada.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 10/5.
Date of creation: 01 Jan 2010
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-30 (All new papers)
- NEP-BAN-2010-01-30 (Banking)
- NEP-BEC-2010-01-30 (Business Economics)
- NEP-FDG-2010-01-30 (Financial Development & Growth)
- NEP-MAC-2010-01-30 (Macroeconomics)
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.:
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"The Effect of External Conditions on Growth in Latin America,"
IMF Staff Papers,
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- Al-Shboul, Mohammad & Anwar, Sajid, 2014. "Pricing of the currency risk in the Canadian equity market," Research in International Business and Finance, Elsevier, Elsevier, vol. 30(C), pages 173-194.
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