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Potts and Yerger Publish on Sensitivity to U.S. Monetary Policy

Posted on 10/19/2010 6:23:32 PM

On October 11, 2010, Todd Potts presented a paper coauthored with David Yerger titled, “U.S. Financial Stress and the Canadian Economy” at the seventieth International Atlantic Economic Society’s conference, held in Charleston, S.C.

The paper examined the impact that changes in U.S. financial stress, as measured by an index constructed by economists at the International Monetary Fund, impacts Canadian real GDP, and whether or not this impact is different depending on whether or not the U.S. is in a “high-stress” vs. a “low-stress” environment.

A paper by Potts and Yerger titled “Variations across Canadian Regions in the Sensitivity to U.S. Monetary Policy” has been accepted for publication in the Atlantic Economic Journal. The paper examines the extent to which there are differences across Canadian regions in their employment response to U.S. federal funds rate shocks, and whether or not this employment response differs from that emanating from a shock to the Canadian bank rate.

Department of Economics