00000nam 2200000zi 4500 9.888234 CaOODSP 20221107171930 m o d f cr cn||||||||| 200615t20202020onca ob f000 0 eng d CaOODSP eng rda CaOODSP FB3-5/2020-23E-PDF Ahnert, Toni, author. Trading for bailouts / by Toni Ahnert, Caio Machado and Ana Elisa Pereira. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (51 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-23 "Last updated: June 4, 2020." Includes bibliographical references (pages 30-31). "Government interventions such as bailouts are often implemented in times of high uncertainty. Policymakers may therefore rely on information from financial markets to guide their decisions. We propose a model in which a policymaker learns from market activity and where market participants have high stakes in the intervention. We study how the strategic behavior of informed traders affects market informativeness, the probability and efficiency of bailouts, and stock prices. We apply the model to study the liquidity support of distressed banks and derive implications for market informativeness and policy design. Commitment to a minimum liquidity support can increase market informativeness and welfare"--Abstract. Intervention (Federal government) Econometric models. Bailouts (Government policy) Econometric models Econometric models. Stocks Prices Econometric models. Intervention (Gouvernement fédéral) Modèles économétriques. Renflouement (Finances) Modèles économétriques. Actions (Titres de société) Prix Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2020-23. (CaOODSP)9.806221 PDF 1,014 KB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-23-eng.pdf