In a panel covering a large number of countries from 1970 to 2003, De Santis and Lührmann (2006) for example find that an increase in old-age dependency ratios has been correlated with capital inflows, challenging the view that ageing may contribute to current-account surpluses in developed countries. See also IMF (2004). 31  Young (2002).
If policy-makers are to find the best ways to promote market efficiency, they need a better understanding of market microstructure. They need answers to questions such as, How do transparency and liquidity affect the cost of capital? How do different structures affect the optimal rules for transparency and liquidity in each market? Is the Canadian situation unique?