The Impact of the Global Crisis on Canada-What Do Macro-Financial Linkages Tell Us? /

This 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'...

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Podrobná bibliografie
Hlavní autor: Duttagupta, Rupa
Další autoři: Barrera, N.
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2010.
Edice:IMF Working Papers; Working Paper ; No. 2010/005
On-line přístup:Full text available on IMF
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Shrnutí:This 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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Fyzický popis:1 online resource (19 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students