August 18, 2015
Posts
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Cheap But Flighty: How Global Imbalances Create Financial Fragility
We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights. -
Quantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing Approach
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined. -
August 6, 2015
Completion of Public Consultation: Draft Terms for Auctions of Government of Canada Ultra-Long Bonds
Following the release of the draft Terms for Auctions of Government of Canada Ultra-Long Bonds (proposal) by the Bank of Canada, a three-week consultation period, ending 10 July 2015, was held. -
Exchange Rate Pass-Through, Currency of Invoicing and Market Share
This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market—that is, exporting firms and importing firms. -
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The Endogenous Relative Price of Investment
This paper takes a full-information model-based approach to evaluate the link between investment-specific technology and the inverse of the relative price of investment. The two-sector model presented includes monopolistic competition where firms can vary the markup charged on their product depending on the number of firms competing. -
Examining Full Collateral Coverage in Canada’s Large Value Transfer System
The Large Value Transfer System (LVTS) is Canada’s main electronic interbank funds transfer system that financial institutions use daily to transmit thousands of payments worth several billions of dollars.