A large body of empirical literature investigates differences in financing structures across firms. Private firms’ financing receives little attention due to the lack of data.
We examine the safety of government bonds in the presence of Knightian uncertainty amongst financial market participants. In our model, the information insensitivity of government bonds is driven by strategic complementarities across counterparties and the structure of trading relationships.
This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.
The Bank of Canada is calling for nominations under its Fellowship Program for 2014. This Program fosters excellence in research and analysis in Canada, and develops partnerships with experts outside of the Bank.
Canada’s economy is moving toward the self-generating, self-sustaining growth it needs to normalize, and business investment will become increasingly solid as companies become more confident, Bank of Canada Governor Stephen S. Poloz said today in a speech in Vancouver. “Evidence suggests we are now close to the tipping point from improving confidence into expanding capacity,” […]
In this paper, we investigate the effects of housing-related tax policy measures on macroeconomic aggregates using a dynamic general-equilibrium model.
During the month of April, the Bank of Canada and 52 other central banks and monetary authorities conducted a survey of turnover activity in the foreign exchange and over-the-counter (OTC) derivatives markets in their respective countries. This worldwide effort was coordinated by the Bank for International Settlements (BIS) and is undertaken every three years. The […]