In this paper, we evaluate seven simple monetary policy rules in a wide range of models of the Canadian economy. Our results indicate that none of the seven simple policy rules we examined is robust to model uncertainty, in that no single rule performs well in all models. In fact, our results...

High-value payment systems (HVPSs) are typically liquidity intensive because payments are settled on a gross basis. State-of-the-art solutions to this problem include algorithms that seek netting sets and allow for ad hoc reordering of submitted payments. This paper introduces a new algorithm...

When the central banker's loss function is asymmetric, changes in the volatility of inflation and/or unemployment affect equilibrium inflation. This suggests that changing macroeconomic volatilities may be an important driving force behind trends in observed inflation. Previous evidence, which...

This paper examines optimal government policy when private investment generates information, but investors cannot internalize the informational value their actions have to others. Equilibrium exhibits inefficient delay, as investors adopt a wait-and-see approach. The government can alter...

Wage posting models of job search typically assume that firms can commit to paying workers exactly the posted wage. We relax this assumption and impose "downward" commitment; firms can commit only to paying at least their advertised wage. As each firm can only commit to pay at least their...