This Selected Issues paper addresses some of the key policy and economic challenges facing the Canadian economy. The paper presents a new approach to predicting the business cycle in the context of the Canadian economy. This approach uses a range of parametric and nonparametric tests to gauge the ability of various indicators to predict turning points in the business cycle. The paper also presents a model that links the inflation rate to the business cycle and the rates of change in the exchange rate and in unit labor costs.
Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Government of Canada in terms of the draft agreement set out in the attachment to EBS/95/52 (3/24/95), and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.
The Fund as Trustee of the ESAF Trust shall refrain from making further drawings under a borrowing agreement for the Loan Account of the ESAF Trust that was entered into before November 30, 1993 if any principal amount under that agreement is not paid within ten days after the due date, pending consultation with the creditor, provided however, that the Trustee may resume drawings under the agreement once arrears to the creditor have been paid.
1. Pursuant to Article V, Section 2(b), as set forth in the letter of the National Bank of Belgium (the “Bank”) dated April 19, 1994 (Annex I), the Fund amends the “Administered Account Belgium” established with the International Monetary Fund pursuant to Executive Board Decision No. 8933-(88/117) ESAF, adopted July 27, 1988. The proposed amended Instrument, to allow for a further deposit, is set out in the attachment to the letter of the Bank.
1. Pursuant to Article V, Section 2(b), at the request of the Bank of Botswana (the “Bank”) as set forth in its letter dated May 19, 1994 (Annex I), the Fund adopts the Instrument to establish an account for the administration by the Fund of the deposit to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).
Pursuant to Section IV, Paragraph 3 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the draft agreement and promissory note for an investment by the Bank Negara Malaysia with the Subsidy Account of the Trust as set out in Attachments I and II to EBS/94/135, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement and issue the promissory note.