Government of Canada

About: Government of Canada is a government organization based out in Ottawa, Ontario, Canada. It is known for research contribution in the topics: Monetary policy & Debt. The organization has 796 authors who have published 886 publications receiving 21366 citations. The organization is also known as: federal government of Canada & Her Majesty's Government.

Exchange Rate Misalignment, Capital Flows, and Optimal Monetary Policy Trade-Offs

Abstract: What determines the optimal monetary trade-off between internal objectives (inflation, and output gap) and external objectives (competitiveness and trade imbalances) when inefficient capital flows cause exchange rate misalignment and distort current account positions? We characterize this trade-off analytically, using the workhorse model of modern monetary theory in open economies under incomplete markets--where inefficient capital flows and exchange rate misalignments can arise independently of nominal distortions. We derive a quadratic approximation of the utility-based global policy loss function under fairly general assumptions on preferences and openness, and solve for the optimal targeting rules under co-operation. We show that, in economies with a low degree of exchange rate pass-through, the optimal response to inefficient capital inflows associated with real appreciation is contractionary, above and beyond the natural rate: the optimal policy curbs excessive demand at the cost of exacerbating currency overvaluation. In contrast, a high degree of pass-through, and/or low trade elasticities, warrants expansionary policies that lean against exchange rate appreciation and competitive losses, at the cost of inefficient inflation.

The Beveridge Curve in the Housing Market: Supply and Disequilibrium

Abstract: There is a long-run 'Beveridge Curve' in the Housing market given by the negative relationship between the vacancy rate of housing and the rate of household formation. This is true in the owner-occupied market, the rental market, and the total market for housing irrespective of ownership status. The Beveridge Curve represents a long-run supply condition that can be explained by assuming that (1) the cost to produce a new house is decreasing in the growth rate of the housing stock and (2) the probability to sell a new house is decreasing in the vacancy rate. Short-run deviations from the Beveridge curve represent a measurement of oversupply. Using a years of supply metric, for the total housing market irrespective of ownership, in 2007-2008 there were 0.995 years of supply, more than three times the previous peak of 0.285 years of supply in 1973-1974. Comparing the rental market to the owner-occupied market, oversupply generally shows up in the rental market, not the owner-occupied market and the oversupply in the rental market is twice as volatile as oversupply in the owner-occupied market, implying that a large part of the market adjustment to housing supply occurs in the rental market. Interestingly two-thirds of the oversupply in 2007-2008 resided in the rental market as opposed to the owner-occupied market. Using FHFA data for house prices, 46% of the movements in oversupply in the owner-occupied market since 1975 can be explained by house price movements. The last result suggests that at short horizons (4-6 years) house prices are not determined by supply. Rather, house prices drive supply at short time horizons, permitting bubbles and oversupplies of housing to form.

Trade Flows and Exchange Rates: Importers, Exporters and Products

Abstract: Using highly disaggregated transaction-level trade data, we document the importance of new firm level trade partner relationships and the addition of new products to existing relationships in driving long-run import flows.

The Canadian Law of Judicial Review: Some Doctrine and Cases

Abstract: It is hard to find a useful, up-to-date summary of the Canadian law of judicial review. This summary attempts in a scholarly way to fill that gap. It attempts to work at two levels: the level of basic concept and the level of detail. First, it describes the basic ordering concepts in the Canadian law of judicial review. Then it proceeds to the three analytical steps to determine an application for judicial review: preliminary and procedural concerns, the merits of the judicial review (review for substantive defects and procedural defects), and remedies. Finally, it examines appeals from applications for judicial review. Along the way, key Canadian cases are referenced and discussed. A few are critiqued. The cases include major Supreme Court of Canada cases that strongly influence the law and cases from other courts that offer further instruction on that law. Many of these cases are from the Federal Court of Appeal, the intermediate appellate court that decides more administrative law cases in Canada than any other appellate court. Some cases from other jurisdictions are referenced and discussed for comparative purposes. Some academic commentaries and articles are also referenced and discussed. To facilitate study, all cases and articles are hyperlinked to online full-text versions (where available). The reader is warned that this is only a summary and regard should be had to its date. It is no substitute for competent, specific legal research on a particular issue. Nevertheless, it is hoped that this summary will enrich readers' understandings and stimulate them to consider, reflect upon and make their own valuable contributions to the doctrine.

Individual and community-level determinants of retention of Anglophone and Francophone immigrants across Canada

Abstract: This paper uses Cox Proportional Hazards Models, the Longitudinal Immigration Database, and Harmonized Census Data files to investigate the individual and community determinants of retention of Anglophone and Francophone immigrants in Canada among 1990, 1995, 2000 and 2005 landing cohorts in the first five years after landing. We focus on both the official language capacity of immigrants and the linguistic composition of the communities in which they settle. We find that Official Language Minority Communities (OLMCs) successfully retained Francophone immigrants better than non-OLMCs outside of Quebec. We also find that most cohorts of Anglophone immigrants are more likely to exit Quebec if they started out in an OLMC than if they did not. Cette etude utilise des modeles a risque proportionnel de Cox, la base de donnees longitudinales sur l’immigration, des fichiers de donnees harmonises des recensements de la population afin d’examiner les determinants au niveau individuel et communautaire sur la retention a l’arrivee au pays des cohortes admises en 1990, 1995, 2000 et 2005 au cours des cinq premieres annees apres leur etablissement. L’accent de l’etude porte sur la capacite linguistique dans les deux langues officielles des nouveaux arrivants et la composition linguistique des communautes d’accueil. L’etude revele que les communautes de langue officielle en situation minoritaire (CLOSM) ont plus de succes a maintenir les immigrants francophones que les communautes de langue officielle en situation majoritaire hors-Quebec. L’etude revele aussi que la plupart des cohortes anglophones sont plus susceptible de quitter le Quebec si initialement etablies dans une CLOSM.