This paper documents the extent of financial linkages between Canada and the United States and explores the impact of changes in U.S. financial conditions on financial conditions and real economic activity in Canada. It shows that close to a quarter of financing by Canadian corporations is...

Using data from the US, UK, Japan and Canada, this paper provides evidence on the benefits to an economy from ""multiple avenues of intermediation"". The overall conclusion is that the existence of active securities markets alongside banks is indeed beneficial to the stability of corporate...