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A time-frequency analysis of the Canadian macroeconomy and the yield curve

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Detalhes bibliográficos
Resumo:We use wavelet analysis to study the relationship between the yield curve and macroeconomic indicators in Canada. We rely on the Nelson-Siegel approach to model the zero coupon yield curve, and use the Kalman lter to estimate its time-varying factors: the level, the slope and the curvature. Apart from the bidirectional yield-macro relation, the paper broadens the existing literature by exploring the link between the monetary policy and the yield curve.
Autores principais:Ojo, Mustapha Olalekan
Outros Autores:Aguiar-Conraria, Luís; Soares, M. J.
Assunto:Term structure Yield curve Macroeconomic variables Wavelet Power Spectrum Wavelet Coherency Wavelet Phase Di⁄erence
Ano:2017
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
Descrição
Resumo:We use wavelet analysis to study the relationship between the yield curve and macroeconomic indicators in Canada. We rely on the Nelson-Siegel approach to model the zero coupon yield curve, and use the Kalman lter to estimate its time-varying factors: the level, the slope and the curvature. Apart from the bidirectional yield-macro relation, the paper broadens the existing literature by exploring the link between the monetary policy and the yield curve.