D82 - Asymmetric and Private Information; Mechanism Design - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T10:51:11+00:00Composition of International Capital Flows: A Survey
https://www.bankofcanada.ca/2010/12/working-paper-2010-33/
We survey several key mechanisms that explain the composition of international capital flows: foreign direct investment, foreign portfolio investment and debt flows (bank loans and bonds). In particular, we focus on the following market frictions: asymmetric information in capital markets and exposure to liquidity shocks.2010-12-20T11:42:20+00:00enComposition of International Capital Flows: A Survey2010-12-20International topicsWorking Paper 2010-33https://www.bankofcanada.ca/wp-content/uploads/2010/12/wp10-33.pdfComposition of International Capital Flows: A SurveyKoralai KirabaevaAssaf RazinDecember 2010DD8D82FF2F21F3F34Adverse Selection, Liquidity, and Market Breakdown
https://www.bankofcanada.ca/2010/12/working-paper-2010-32/
This paper studies the interaction between adverse selection, liquidity risk and beliefs about systemic risk in determining market liquidity, asset prices and welfare. Even a small amount of adverse selection in the asset market can lead to fire-sale pricing and possibly to a market breakdown if it is accompanied by a flight-to-liquidity, a misassessment of systemic risk, or uncertainty about asset values.2010-12-13T15:02:52+00:00enAdverse Selection, Liquidity, and Market Breakdown2010-12-13Financial institutionsFinancial marketsFinancial stabilityAdverse Selection, Liquidity, and Market Breakdownhttps://www.bankofcanada.ca/wp-content/uploads/2010/12/wp10-32.pdfAdverse Selection, Liquidity, and Market BreakdownKoralai KirabaevaDecember 2010DD8D82GG0G01G1G11Liquidity Transformation and Bank Capital Requirements
https://www.bankofcanada.ca/2010/08/working-paper-2010-22/
This paper presents a dynamic general equilibrium model where asymmetric information about asset quality leads to asset illiquidity. Banking arises endogenously in this environment as banks can pool illiquid assets to average out their idiosyncratic qualities and issue liquid liabilities backed by pooled assets whose total quality is public information.2010-08-23T14:19:04+00:00enLiquidity Transformation and Bank Capital Requirements2010-08-23Financial stabilityFinancial system regulation and policiesWorking Paper 2010-22https://www.bankofcanada.ca/wp-content/uploads/2010/08/wp10-22.pdfLiquidity Transformation and Bank Capital RequirementsHajime TomuraAugust 2010DD8D82EE4E44GG2G21