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Discussion Paper
Price, inventory dynamics of a Phelps-Winter type firm
Working Paper
Canadian financial markets : the Government's proposal for reform
This paper discusses Canada's financial sector, recent institutional changes, and the Government's recent (April 1985) proposal for financial market reform and its likely impact. Canada's financial markets have been dominated by traditional financial institutions known as the "four pillars". Although traditions and regulations have contributed to the evolution of Canadian financial markets, economic conditions and customer-provided incentives have recently created the major impetus for change. Structural changes have occurred along three separate but related tracks: product and service ...
Working Paper
European integration, exchange rate management, and monetary reform: a review of the major issues
Since the adoption of the Single European Act in 1986, doubts have been expressed about the ability of the European Monetary System as presently structured to ensure an efficient and effective monetary system for the single European market. The further adoption by the European Council (June 1989) of the Report on Economic and Monetary Union (the Delors report) moves the European Community towards even greater monetary integration. ; Policy discussions have focussed on perceived problems with the current institutional and political structure of the European Monetary System and its exchange ...
Journal Article
Business fixed investment: recent developments and outlook
Discussion Paper
Two papers on macroeconomic fluctuations
Working Paper
Should fixed coefficients be reestimated every period for extrapolation?
This paper demonstrates that forecast accuracy is not necessarily improved when fixed coefficient models are sequentially reestimated, and used for prediction, after updating the database with the latest observation(s). This is at variance with the now popular method (see Meese and Rogoff (1983, 1985)) of sequentially reestimating fixed coefficient models for prediction as new data "rolls" in. It is argued that although "rolling" may minimize the variance of predictions for some classes of estimators, "rolling" does not necessarily yield accurate predictions (i.e., predictions that are ...
Working Paper
Taxation of capital gains on foreign exchange transactions and the non- neutrality of changes in anticipated inflation
In a two-country world with perfect capital markets and no taxes, the existence of purchasing power parity is fully consistent with interest party and the equalization of real interest rates across countries. In such a world, changes in anticipated inflation in either country will not alter the world equilibrium real interest rate. If asset returns are taxed, the existence of taxes may drive a wedge between real after-tax interest rates, and changes in anticipated inflation may create arbitrage opportunities, thereby creating capital flows between countries and thereby altering equilibrium ...