Language selection

Government of Canada / Gouvernement du Canada

Search

Trading for bailouts / by Toni Ahnert, Caio Machado and Ana Elisa Pereira.: FB3-5/2020-23E-PDF

"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.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.888234&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleTrading for bailouts / by Toni Ahnert, Caio Machado and Ana Elisa Pereira.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-23
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: June 4, 2020."
  • Includes bibliographical references (pages 30-31).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020.
  • ©2020
Author / Contributor
  • Ahnert, Toni, author.
Description1 online resource (51 pages) : colour illustrations.
Catalogue number
  • FB3-5/2020-23E-PDF
Subject terms
Request alternate formats
To request an alternate format of a publication, complete the Government of Canada Publications email form. Use the form’s “question or comment” field to specify the requested publication.

Page details

Report a problem or mistake on this page
Date modified: