Kevin Moran

Inflation and Growth: A New Keynesian Perspective

The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models.

The Role of Bank Capital in the Propagation of Shocks

Bank Leverage Regulation and Macroeconomic Dynamics

This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and economic cycles and examines its interaction with monetary policy.

The Role of Bank Capital in the Propagation of Shocks

Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the propagation of shocks. We use the model to conduct quantitative [...]

Trend Inflation, Wage and Price Rigidities, and Welfare

This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts.

Forecasting Canadian Time Series with the New Keynesian Model

The authors document the out-of-sample forecasting accuracy of the New Keynesian model for Canada.

Bank Capital, Agency Costs, and Monetary Policy

Evidence suggests that banks, like firms, face financial frictions when raising funds.

Simple Monetary Policy Rules in an Open-Economy, Limited-Participation Model

The authors assess the stabilization properties of simple monetary policy rules within the context of a small open-economy model constructed around the limited-participation assumption and calibrated to salient features of the Canadian economy. By relying on limited participation as the main nominal friction that affects the artificial economy, the authors provide an important check of the robustness of the results obtained using alternative environments in the literature on monetary policy rules, most notably the now-standard "New Keynesian" paradigm that emphasizes rigidities in the price-setting mechanism.

Labour Markets, Liquidity, and Monetary Policy Regimes

We develop an equilibrium model of the monetary policy transmission mechanism that highlights information frictions in the market for money and search frictions in the market for labour.

Inflation Expectations and Learning about Monetary Policy

Various measures indicate that inflation expectations evolve sluggishly relative to actual inflation. In addition, they often fail conventional tests of unbiasedness.

Estimated DGE Models and Forecasting Accuracy: A Preliminary Investigation with Canadian Data

This paper applies the hybrid dynamic general-equilibrium, vector autoregressive (DGE-VAR) model developed by Ireland (1999) to Canadian time series.

Dynamic General-Equilibrium Models and Why the Bank of Canada is Interested in Them

Dynamic general-equilibrium models (DGEMs) are being increasingly used in macroeconomic research. In this article, the author describes the main features of these models and outlines their contribution to economic research performed at the Bank of Canada.

He notes that the basic principle of DGEMs is that the modelling of economic activity, even on a scale as large as the economy of a country, should start with a series of microeconomic problems (at the scale of individuals), which, once resolved, are aggregated to represent the macroeconomic reality described by the model.