Jose Dorich is a Principal Researcher in the Model Development Division of the Canadian Economic Analysis Department. His primary research interests include macroeconomic theory, monetary economics and applied macroeconomics. Specific topics include inflation dynamics, quantitative easing and price level targeting. Jose has also worked extensively with ToTEM - the Bank of Canada’s main DSGE model for projection and policy analysis. Mr. Dorich received his PhD in Economics from Universitat Pompeu Fabra.
This report provides a detailed technical description of an updated version of the Terms-of-Trade Economic Model (ToTEM II), which replaced ToTEM (Murchison and Rennison 2006) in June 2011 as the Bank of Canada’s quarterly projection model for Canada.Topics: Business fluctuations and cycles; Economic models
This article describes changes to the structure of ToTEM—the Bank of Canada’s main model for projection and policy analysis—that allow an independent role for long-term interest rates, as well as for the risk spreads that lead to differences in the interest rates faced by households, firms and the government. These changes broaden the range of policy questions that the model can address and improve its ability to explain data. The authors use the model to simulate the effects of shocks to the risk spreads on interest rates similar to those that occurred during the recent financial crisis. They also use the model to assess the macroeconomic impact of higher requirements for bank capital and liquidity.Topics: Economic models; Financial system regulation and policies; Interest rates
I present a structural econometric analysis supporting the hypothesis that money is still relevant for shaping inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively important, although smaller than they used to be in the early postwar period.Topics: Business fluctuations and cycles; Monetary aggregates; Transmission of monetary policy