Ever since the Great Recession, central banks have supplemented their traditional policy tool of setting the short-term interest rate with massive buyouts of assets to extend lines of credit and jolt flagging demand. As with many new policies, there have been a range of reactions from...

Ever since the Great Recession, central banks have supplemented their traditional policy tool of setting the short-term interest rate with massive buyouts of assets to extend lines of credit and jolt flagging demand. As with many new policies, there have been a range of reactions from...

We construct a small-open-economy, New Keynesian dynamic stochastic generalequilibrium model with real-financial linkages to analyze the effects of financial shocks and macroprudential policies on the Canadian economy. Our model has four key features. First, it allows for non-trivial...

As the Indonesian economy is becoming progressively more integrated with the global economy, the impact of global economic shocks on the domestic economy is becoming more pronounced. Capital inflows, which trigger excessive liquidity and exacerbate the risk of a sudden reversal, pose a serious...

We examine a propagation mechanism that arises from households' long-term borrowing and show empirically that it has sizable real effects. The mechanism recognises that when there is long-term debt, an impulse to new borrowing generates a predictable hump-shaped path of future debt service. We...

Two extraordinary inflation surprises of the last generation were the longstanding inflation shortfall from central bank targets and now the pandemic inflationary.Inflation shortfalls can be attributed to characteristics of monetary systems represented by a model with increasing inelasticity,...

Complexity in financial markets is slowly overwhelming canonical statistical modelling. With global crises which stemming from contagion effects becoming more frequent, new tools for financial distress transmission c apture are needed. Graph theory , with its branch on minimum spanning trees can...