Posts

• The Carry Trade, Portfolio Diversification, and the Adjustment of the Japanese Yen

  Staff Discussion Paper 2008-2 Corinne Luu

  In this paper, the author considers whether fundamentals or other factors can explain the yen's ongoing weakness. In particular, the importance of capital outflows due to the carry trade and longer-term portfolio investment outflows, which may be delaying the adjustment of the yen, are investigated. A simple portfolio model is developed, composed of a speculative […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rates, International topics, Recent economic and financial developments JEL Code(s): F, F2, F21, F3, F31, F32, G, G1, G11

• An Overview of Carbon Markets and Emissions Trading: Lessons for Canada

  Staff Discussion Paper 2008-1 Michael R. King

  The author provides an overview of carbon markets and explains how emissions trading can be important in encouraging the reduction of CO2 emissions in an efficient manner. He describes the key steps in establishing a cap-and-trade system, and reviews the European experiences with emissions trading. He highlights the lessons learned from the EU Emissions Trading […]

  Content Type(s): Staff research, Staff discussion papers Topic(s): International topics, Market structure and pricing JEL Code(s): D, D4, N, N5, N50, Q, Q2, Q21
• January 18, 2008

  Changes in Minimum Bank of Canada Nominal Bond Purchases at Auctions

  Section 5.1 of the Statement of Policy Governing the Acquisition and Management of Financial Assets for the Bank of Canada's Balance Sheet states that "The Bank's holdings of Government of Canada nominal bonds and treasury bills are structured to broadly reflect the composition of the federal government's stock of nominal domestic marketable debt."

  Content Type(s): Press, Market notices
• January 15, 2008

  Bank of Canada Review - Winter 2007-2008

  

  Cover page

  Roman Antoninianus

  The coins form part of the National Currency Collection of the Bank of Canada.
  Photography by Gord Carter, Ottawa.

  Content Type(s): Publications, Bank of Canada Review
• January 14, 2008

  Business Outlook Survey - Winter 2007-08

  Overall, firms remain positive about the outlook, with the results of the winter survey showing little change from those of the autumn survey. Nonetheless, firms reported more uncertainty in light of recent developments, most notably the volatility in the value of the Canadian dollar.

  Content Type(s): Publications, Business Outlook Survey
• January 14, 2008

  Backgrounder on Questions in the Business Outlook Survey Concerning Past Sales and Credit Conditions

  Starting with the winter 2007–08 survey, the results of two additional questions became included in the Business Outlook Survey (BOS) publication: the balance of opinion on past sales and the balance of opinion on credit conditions. This backgrounder briefly describes the two questions and presents the correlations between the responses and relevant economic data.

  Content Type(s): Background materials

• Default Dependence: The Equity Default Relationship

  Staff Working Paper 2008-1 Stuart Turnbull, Jun Yang

  The paper examines three equity-based structural models to study the nonlinear relationship between equity and credit default swap (CDS) prices. These models differ in the specification of the default barrier.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial markets JEL Code(s): G, G1, G12, G13
• January 8, 2008

  Transparency: The More, The Better?

  Remarks Sheryl Kennedy Association des femmes en finance du Québec Montréal, Quebec

  Transparency is the cornerstone of a well-functioning financial system. It's an issue that has been getting a lot of attention, and deservedly so, as we consider what has gone wrong in the market for asset-backed commercial paper.

  Content Type(s): Press, Speeches and appearances, Remarks
• January 7, 2008

  Summary of the Survey on Canadian Corporate Foreign Exchange Hedging

  Each year since 2004, the Bank of Canada has undertaken a questionnaire with banks that are active in the Canadian dollar foreign exchange market through offices in Toronto and/or Montréal.

  Content Type(s): Press, Market notices
• January 4, 2008

  Bank of Canada announces Deputy Governor appointment

  Media Relations Ottawa, Ontario

  The Board of Directors of the Bank of Canada today announced the appointment of John D. Murray as Deputy Governor of the Bank and a member of the Bank's Governing Council, effective 4 January 2008.

  Content Type(s): Press, Press releases