IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v24y1991i2p282-99.html
   My bibliography  Save this article

Canadian Weekly Money Supply Announcements and Financial Market Reactions in the First Years of Targeting: A View of Market Perceptions of Bank of Canada Policy

Author

Listed:
  • Richard Deaves

Abstract

This paper demonstrates, using weekly data between 1976 and 1979, that unanticipated changes in the Canadian money supply exerted a significant impact on the foreign exchange and bond markets during the first years of the Bank of Canada's policy of targeting M1 growth. This finding, which is perhaps surprising in light of the apparent volatility of weekly changes in the Canadian money supply, is consistent with the efficient markets paradigm. After the empirical regularities are established, an interpretation is offered that focuses on market perceptions of the reaction function of the Bank of Canada.

Suggested Citation

  • Richard Deaves, 1991. "Canadian Weekly Money Supply Announcements and Financial Market Reactions in the First Years of Targeting: A View of Market Perceptions of Bank of Canada Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 282-299, May.
    • Handle: RePEc:cje:issued:v:24:y:1991:i:2:p:282-99
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199105%2924%3A2%3C282%3ACWMSAA%3E2.0.CO%3B2-M
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bernd Hayo & Matthias Neuenkirch, 2012. "Domestic Or U.S. News: What Drives Canadian Financial Markets?," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 690-706, July.
    2. Amir Kia, 2006. "Economic policies and demand for money: evidence from Canada," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1389-1407.
    3. Nurhan Davutyan, 1997. "The bid-ask spread for dollars in Kuwait: a brief note," Applied Economics Letters, Taylor & Francis Journals, vol. 4(11), pages 715-717.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:24:y:1991:i:2:p:282-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.