Matías Vieyra is a Senior Economist in the Canadian Economic Analysis Department at the Bank of Canada. His research interests are macroeconomics, monetary economics, and heterogeneous-agent models. He received his Ph.D. in Economics from University of California, Los Angeles.
For six months in 2025, Canada imposed counter tariffs on a wide range of goods from the United States. This short and well defined episode offers a unique opportunity to examine how Canadian retailers adjust prices in response to tariffs—and how retailers’ expectations and transparency with consumers affect pricing decisions.
This note examines how monetary policy responses to shelter inflation affect both the overall economy and different households. We find that the aggregate macroeconomic effects of responding to shelter inflation are modest, whereas the redistributive consequences across households are substantially larger.
Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values.
