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9269 Results

June 13, 2013

Financial System Review - June 2013

Financial System Review - June 2013
The Governing Council judges that the risks to the Canadian financial system have decreased somewhat relative to the December FSR, but that the overall level of risk remains high. The key risks are similar to those highlighted in December, and emanate primarily from the external environment.

Business Cycle Effects of Credit Shocks in a DSGE Model with Firm Defaults

Staff Working Paper 2013-19 M. Hashem Pesaran, TengTeng Xu
This paper proposes a theoretical framework to analyze the relationship between credit shocks, firm defaults and volatility, and to study the impact of credit shocks on business cycle dynamics.

Fire-Sale FDI or Business as Usual?

Staff Working Paper 2013-17 Ron Alquist, Rahul Mukherjee, Linda Tesar
Using a new data set, we examine the characteristics and dynamics of cross-border mergers and acquisitions during emerging-market financial crises, that is, so-called “fire-sale FDI.” Our findings shed fresh light on whether the transactions undertaken during crisis periods differ in fundamental ways from those undertaken during more tranquil periods.
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