Real and nominal effects of monetary policy shocks

Abstract.  We employ the identification scheme of Kahn, Kandel and Sarig (2002) to analyse the impact of Canadian monetary policy on ex ante real interest rates and inflationary expectations. First, we decompose nominal interest rates into ex ante real rates and inflationary expectations using the methodology of Blanchard and Quah (1989) . Then we estimate a recursive VAR model with innovations in a monetary aggregate and the overnight target interest rate as alternative measures of monetary policy shocks. We find that a negative policy shock raises both nominal and ex ante real interest rates, lowers inflationary expectations and real industrial output, and appreciates the Canadian dollar.     

The big-bang-for-your-buck theory

Do it right, and your investment in information technology can have all sorts of strategic payoffs. Do it wrong, and you'll be paying, dearly, for nothing. Here's a guide to evaluating IT and measuring its impact.     

Shifting responsibility to workers: the future of retirement adequacy in the United States

While many 401(k) participants at large companies can expect replacement of nearly 100% of preretirement income, not all workers participate in their 401(k) plan. Moreover, the authors show that even among participants, the extent of retirement preparedness depends on defined benefit (DB) plan coverage and retiree medical benefit generosity. Given recent trends in the elimination of DB plans and retiree medical subsidies and the voluntary nature of 401(k) participation, retirement income responsibility is increasingly shifting to workers. The authors discuss how employers might help workers meet their retirement income needs in this changing environment.     

Coupling High Self-Perceived Creativity and Successful Newcomer Adjustment in Organizations: The Role of Supervisor Trust and Support for Authentic Self-Expression

This study addresses how supervisors can facilitate the socialization of newcomers with high self-perceived creativity into their new jobs. We combine self-verification theory and current literature on socialization in a dual-stage moderated mediation model where a) newcomer self-perceived creativity interacts with supervisor trust in the newcomer to trigger supervisor perception of newcomer creativity; and b) supervisor perception of newcomer creativity, in turn, interacts with supervisor support for newcomer authentic self-expression to impact newcomer adjustment outcomes (i.e., task performance, job satisfaction, and stress symptoms). A two-wave, multisource study of 146 newcomer–supervisor dyads provides support for our predictions, suggesting that high levels of supervisor trust and support for authentic self-expression serve as moderating conditions allowing supervisor perception of newcomer creativity to positively mediate the relationship between newcomer self-perceived creativity and newcomer adjustment.     

International trade,knowledge diffusion,and growth

The international diffusion of knowledge is not a major topic in traditional trade theory, although it has a crucial direct and indirect impact on the development of open economics. In this article, the scale effects and the resource reallocation effects of the international transmission of knowledge are analyzed. Within a model, it is shown that free trade in goods can harm growth in an economy that is relatively well supplied with skilled labor if the international diffusion of knowledge is not intensive enough.