International topics

• Domestic versus External Borrowing and Fiscal Policy in Emerging Markets

  Staff Working Paper 2007-33 Garima Vasishtha

  Domestic public debt issued by emerging markets has risen significantly relative to international debt in recent years. Some recent empirical evidence also suggests that sovereigns have defaulted differentially on debt held by domestic and external creditors.

  Content Type(s): Staff research, Staff working papers Topic(s): Debt management, International topics JEL Code(s): F, F3, F30, H, H2, H21, H6, H63
• April 15, 2007

  Renewing the International Monetary Fund: A Review of the Issues

  Bank of Canada Review - Spring 2007 Danielle Lecavalier, Eric Santor

  Given the rapid and ongoing integration of the global economy, the International Monetary Fund needs to renew its role, governance structure, and functions if it is to maintain its relevance as the institution charged with promoting global financial stability. Lecavalier and Santor examine the areas of possible reform, including quota, voice, and representation; internal governance; surveillance; lending instruments; finances; and the Fund's role in low-income countries. They also review current Bank of Canada research that supports these reform efforts, including an integrated framework for IMF surveillance recently developed at the Bank.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics

• Corporate Balance Sheets in Developed Economies: Implications for Investment

  Staff Working Paper 2007-24 Denise Côté, Christopher Graham

  In this paper, the authors examine the aggregate national balance-sheets of non-financial corporations in Australia and the G7 countries with a view to assessing both their financial structure and their financial position. More importantly, the authors investigate whether the financial position of non-financial corporations (i.e., debt-to-equity ratio) is material to the economy's investment prospects and whether the importance of this channel differs depending on the structure of corporate financing i.e., bank-based or market-oriented financing structures.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, International topics JEL Code(s): E, E2, E22, E3, E32, E4, E44

• IMF-Supported Adjustment Programs: Welfare Implications and the Catalytic Effect

  Staff Working Paper 2007-22 Carlos De Resende

  The author studies the welfare implications of adjustment programs supported by the International Monetary Fund (IMF). He uses a model where an endogenous borrowing constraint, set up by international lenders who will never lend more than a debt ceiling, forces the borrowing economy to always choose repayment over default.

  Content Type(s): Staff research, Staff working papers Topic(s): International topics JEL Code(s): F, F3, F32, F33, F34, F4, F41

• World Real Interest Rates: A Global Savings and Investment Perspective

  Staff Working Paper 2007-16 Brigitte Desroches, Michael Francis

  Over the past 15 years, long-term interest rates have declined to levels not seen since the 1970s. This paper explores possible shifts in global savings and investment that have led to this fall in the world real interest rate.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates, International topics JEL Code(s): E, E2, E4, F, F3

• Exporting and FDI with Endogenous Productivity

  Staff Working Paper 2007-14 Oana Secrieru, Marianne Vigneault

  This paper provides an analysis of how a firm’s decision to serve a foreign market by exporting or by engaging in foreign direct investment (FDI) affects firm productivity, when productivity is endogeneous as a function of training. The main result of our paper is that, with endogeneous productivity, exporting results in lower productivity than does FDI, but exporting may result in higher or lower employment and output than does FDI.

  Content Type(s): Staff research, Staff working papers Topic(s): International topics, Labour markets, Productivity JEL Code(s): F, F2, F22, F23

• Do We Need the IMF to Resolve a Crisis? Lessons from Past Episodes of Debt Restructuring

  Staff Working Paper 2007-10 Philipp Maier

  This study investigate how debt restructurings have evolved over the decades. Debtors and creditors have a long history of engaging an outsider – a “third party”, such as the IMF – to organise and facilitate debt restructurings.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, International topics JEL Code(s): E, E5, F, F3, N, N1, N2