Staff discussion papers

• 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