Uncategorized

• Sovereign Default Risk Premia, Fiscal Limits and Fiscal Policy

  Staff Working Paper 2011-10 Huixin Bi

  We develop a closed economy model to study the interactions among sovereign risk premia, fiscal limits, and fiscal policy. The stochastic fiscal limits, which measure the ability and willingness of the government to service its debt, arise endogenously from a dynamic Laffer curve.

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, International topics JEL Code(s): E, E6, E62, H, H3, H30, H6, H60
• March 30, 2011

  Bank of Canada Announces Recipients of 2011 Fellowship and Governor’s Awards

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that Professors Randall K. Morck of the University of Alberta and Gregor W. Smith of Queen’s University are the recipients of the Bank’s Fellowship Award for 2011.

  Content Type(s): Press, Press releases Source(s): Fellowship Program
• March 28, 2011

  The “Great” Recession in Canada: Perception vs. Reality

  Remarks Jean Boivin Montréal CFA Society Montréal, Quebec

  Barely three years ago, the financial crisis was a source of major concern worldwide. This unprecedented event had serious and costly repercussions, which we continue to feel today.

  Content Type(s): Press, Speeches and appearances, Remarks
• March 26, 2011

  The Paradigm Shifts: Global Imbalances, Policy, and Latin America

  Remarks Mark Carney Inter-American Development Bank Calgary, Alberta

  Globalization is the opportunity and the challenge of our age. It has the potential to lift billions out of poverty, vastly expand economic prospects, and develop a more diverse and resilient global economy.

  Content Type(s): Press, Speeches and appearances, Remarks
• March 10, 2011

  Bank of Canada Announces Further Details on New Series of Polymer Bank Notes

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it will begin circulating a new $100 polymer bank note in November 2011, with a polymer $50 note to follow in March 2012. The Bank also provided further technical and background information about the new bank notes.

  Content Type(s): Press, Press releases Topic(s): Bank notes

• Belief Dispersion and Order Submission Strategies in the Foreign Exchange Market

  Staff Working Paper 2011-8 Ingrid Lo, Stephen Sapp

  This paper empirically examines how dispersions across investors beliefs influence traders order submission decisions in the foreign exchange market. Previous research has found that dispersion in traders beliefs regarding future macroeconomic announcements has a significant impact on both price dynamics and trading volume before the announcements in the foreign exchange and other financial markets.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Market structure and pricing JEL Code(s): D, D4, G, G1
• March 1, 2011

  Bank of Canada maintains overnight rate target at 1 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

  Content Type(s): Press, Press releases

• The Private Equity Premium Puzzle Revisited

  Staff Working Paper 2011-6 Katya Kartashova

  In this paper, I extend the results of Moskowitz and Vissing-Jørgensen (2002) on the returns to entrepreneurial investments in the United States. First, following the authors’ methodology I replicate the original findings from the Survey of Consumer Finances (SCF) for the period 1989–1998 and show that the returns to private and public equity are similar.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Interest rates, Recent economic and financial developments JEL Code(s): G, G1, G11, G12, G2, G24, G3, G31, G32
• February 18, 2011

  Global imbalances: the international monetary system and financial stability

  Mark Carney, Governor of the Bank of Canada contributed the article "Global imbalances: the international monetary system and financial stability" to the Banque de France's Financial Stability Review.

  Content Type(s): Press, Announcements

• Private Information Flow and Price Discovery in the U.S. Treasury Market

  Staff Working Paper 2011-5 George Jiang, Ingrid Lo

  Existing studies show that U.S. Treasury bond price changes are mainly driven by public information shocks, as manifested in macroeconomic news announcements and events. The literature also shows that heterogeneous private information contributes significantly to price discovery for U.S. Treasury securities.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): G, G1, G12, G14