Exchange rate pass-through to consumer prices: Theory and recent evidence

In an open economy such as Canada's, exchange rate movements can have a material impact on consumer prices. This is particularly important in the current context, with the significant depreciation of the Canadian dollar vis-a-vis the U.S. dollar since late 2012. This paper provides a broad overview of the various mechanisms by which exchange rate movements pass through to consumer prices and discusses the implications of exchange rate pass-through (ERPT) for the conduct of monetary policy. It then describes some of the tools used at the Bank of Canada to help quantify ERPT. We conclude by taking a closer look at the current situation in Canada, presenting a range of evidence that suggests ERPT has played an important role in recent inflation dynamics.Dans une économie ouverte comme le Canada, les mouvements du taux de change peuvent avoir une incidence considérable sur les prix à la consommation. Ce constat revêt une importance particulière dans le contexte actuel où le dollar canadien s’est fortement déprécié depuis la fin de 2012 par rapport à la devise américaine. Dans cette étude, les auteurs brossent un portrait des divers mécanismes par lesquels les variations du taux de change se répercutent sur les prix à la consommation et analysent les conséquences de ce phénomène de transmission pour la conduite de la politique monétaire. Ils décrivent ensuite certains des outils qu’utilise la Banque du Canada pour mesurer le degré de transmission des mouvements de change. En conclusion, ils examinent de plus près la situation actuelle au Canada et présentent un éventail de faits qui donnent à penser que la transmission des variations du taux de change a grandement influé sur la dynamique récente de l’inflation

A comprehensive evaluation of measures of core inflation for Canada

This paper evaluates the usefulness of various measures of core inflation for the conduct of monetary policy. Traditional exclusion-based measures of core inflation are found to perform relatively poorly across a range of evaluation criteria, in part due to their inability to filter unanticipated transitory shocks. In contrast, measures such as the trimmed mean and the common component of CPI perform favorably, since they better capture persistent price movements and tend to move with macroeconomic drivers. All measures of core inflation, however, have limitations - consequently, there is merit in monitoring a set of measures. Moreover, core inflation measures are best viewed as complements to, rather than substitutes for, the thorough analysis of inflation and capacity pressures that informs the monetary policy process.Dans cette étude, les auteurs évaluent l’utilité de diverses mesures de l’inflation fondamentale pour la conduite de la politique monétaire. À la lumière de toute une série de critères d’évaluation, ils constatent que les mesures traditionnelles à exclusion de composantes font plutôt pâle figure, ce qui s’explique en partie par leur incapacité à faire abstraction des chocs temporaires inattendus. En revanche, les mesures telles que la moyenne tronquée et la composante commune de l’IPC (indice des prix à la consommation) se démarquent avantageusement, car elles saisissent mieux les variations durables des prix et suivent habituellement l’évolution des déterminants macroéconomiques. Toutes les mesures de l’inflation fondamentale présentent toutefois des lacunes. Il y a donc lieu de surveiller un ensemble de mesures. Par ailleurs, il vaut mieux reconnaître les mesures de l’inflation fondamentale non comme des substituts, mais comme des compléments à l’analyse approfondie de l’inflation et des pressions sur la capacité de production, analyse qui vient éclairer le processus d’élaboration de la politique monétaire

The common component of CPI: An alternative measure of underlying inflation for Canada

In this paper, the authors propose a measure of underlying inflation for Canada obtained from estimating a monthly factor model on individual components of the CPI. This measure, labelled the common component of CPI, has intuitive appeal and a number of interesting features. In particular, it is not affected by sector-specific price movements that can distort the signal in many other measures of underlying inflation, and appears to capture price movements that are indicative of aggregate demand fluctuations in the Canadian economy. This indicator may serve as a useful complement to existing measures of underlying inflation monitored by the Bank of Canada

Adsorption of unfolded Cu/Zn superoxide dismutase onto hydrophobic surfaces catalyzes its formation of amyloid fibrils

Intracellular aggregates of superoxide dismutase 1 (SOD1) are associated with amyotrophic lateral sclerosis. In vivo, aggregation occurs in a complex and dense molecular environment with chemically heterogeneous surfaces. To investigate how SOD1 fibril formation is affected by surfaces, we used an in vitro model system enabling us to vary the molecular features of both SOD1 and the surfaces, as well as the surface area. We compared fibril formation in hydrophilic and hydrophobic sample wells, as a function of denaturant concentration and extraneous hydrophobic surface area. In the presence of hydrophobic surfaces, SOD1 unfolding promotes fibril nucleation. By contrast, in the presence of hydrophilic surfaces, increasing denaturant concentration retards the onset of fibril formation. We conclude that the mechanism of fibril formation depends on the surrounding surfaces and that the nucleating species might correspond to different conformational states of SOD1 depending on the nature of these surfaces

A Simple Route towards High-Concentration Surfactant-Free Graphene Dispersions

A simple solvent exchange method is introduced to prepare high-concentration and surfactant-free graphene liquid dispersion. Natural graphite flakes are first exfoliated into graphene in dimethylformamide (DMF). DMF is then exchanged by terpineol through distillation, relying on their large difference in boiling points. Graphene can then be concentrated thanks to the volume difference between DMF and terpineol. The concentrated graphene dispersions are used to fabricate transparent conductive thin films, which possess comparable properties to those prepared by more complex methods.Comment: 9 pages, 3 figure

UK Medical Cannabis Registry palliative care patients cohort: initial experience and outcomes

Introduction: Palliative care aims to improve quality of life through optimal symptom control and pain management. Cannabis-based medicinal products (CBMPs) have a proven role in the treatment of chemotherapy-induced nausea and vomiting. However, there is a paucity of high-quality evidence with regards to the optimal therapeutic regimen, safety, and effectiveness of CBMPs in palliative care, as existing clinical trials are limited by methodological heterogeneity. The aim of this study is to summarise the outcomes of the initial subgroup of patients from the UK Medical Cannabis Registry who were prescribed CBMPs for a primary indication of palliative care, cancer pain and chemotherapy-induced nausea and vomiting, including effects on health-related quality of life and clinical safety. Methods: A case series from the UK Medical Cannabis Registry of patients, who were receiving CBMPs for the indication of palliative care was undertaken. The primary outcome consisted of changes in patient-reported outcome measures including EQ-5D-5L, General Anxiety Disorder-7 (GAD-7), Single-Item Sleep Quality Scale (SQS), Pain Visual Analog Scale (VAS) and the Australia-Modified Karnofsky Performance Scale at 1 and 3 months compared to baseline. Secondary outcomes included the incidence and characteristics of adverse events. Statistical significance was defined by p-value< 0.050. Results: Sixteen patients were included in the analysis, with a mean age of 63.25 years. Patients were predominantly prescribed CBMPs for cancer-related palliative care (n = 15, 94%). The median initial CBD and THC daily doses were 32.0 mg (Range: 20.0–384.0 mg) and 1.3 mg (Range: 1.0–16.0 mg) respectively. Improvements in patient reported health outcomes were observed according to SQS, EQ-5D-5L mobility, pain and discomfort, and anxiety and depression subdomains, EQ-5D-5L index, EQ-VAS and Pain VAS validated scales at both 1-month and 3-months, however, the changes were not statistically significant. Three adverse events (18.75%) were reported, all of which were either mild or moderate in severity. Conclusion: This small study provides an exploratory analysis of the role of CBMPs in palliative care in the first cohort of patients since CBMPs legalisation in the UK. CBMPs were tolerated with few adverse events, all of which were mild or moderate and resolved spontaneously. Further long-term safety and efficacy studies involving larger cohorts are needed to establish CBMPs role in palliative care, including comparisons with standard treatments