Household inflation can be decomposed into three terms that reflect nominal expenditure, real quantities and household preferences, using the money pump proposed by Echenique, Lee and Shum (2011). I quantify the importance of changes in household preferences on household inflation rates using 11...

Derivatives exchanges often determine collateral requirements, which are fundamental to market safety, with dated risk models assuming normal returns. However, derivatives returns are heavy-tailed, which leads to the systematic under-collection of collateral (margin). This paper uses extreme...

I propose a novel dynamic portfolio-balance model of the yield curve for Government of Canada bonds to evaluate the portfolio-balance effects of the Bank of Canada's Government of Canada Bond Purchase Program. My results suggest that this program, launched on March 27, 2020, in response to the...

This paper explores the implications of introducing digital public and private monies (e.g. tokenized central bank digital currency [CBDC] or tokenized deposits) for stablecoins and illicit crypto transactions. When they pay a high interest rate and guarantee a high degree of anonymity, these...

We investigate the welfare consequences of consumer credit regulation in a dynamic, heterogeneous-agent model with endogenous lender market power. We incorporate a decentralized credit market with search and incomplete information frictions into an off-the-shelf Eaton-Gersovitz model of consumer...

A significant reallocation of labour towards "green" jobs will be crucial for the transition to a decarbonised economy. Skills mismatches challenge the feasibility of this reallocation, particularly with many developed countries also facing substantial labour shortages. This paper analyses the...

To identify the households most affected by a carbon tax I set up a multi-sector model with putty-clay technology. A $100-per-ton carbon tax cuts emissions by 25% after 5 years, but reduces output by 3% in the short run and 4% in the long run. Initially, the tax is progressive despite poorer...