The Role of the United States Monetary Stock in a Model of the Canadian Economy
This paper is an attempt to evaluate the way the monetary policy in the United States influences the behavior of the Canadian economy. The analysis of this question is approached by estimating a simple reduced form model of the Canadian economy where try to find the extent to which nominal income in Canada is determined by the monetary policy of the United States. An attempt is also made to identify the important channels through which this influence is exerted.
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