Recent Evidence on the Resiliency of Flexible Inflation Targeting
This paper assesses the resilience of flexible inflation targeting in the presence of large and persistent supply shocks.
Soyoung Lee
Senior Economist
- Ph.D in Economics, Ohio State University
- M.A in Economics, Ohio State University
- B.A in Economics, Seoul National University
Staff research
The Macroeconomic Effects of Debt Relief Policies During Recessions
A large-scale reduction in mortgage principal can strengthen a recovery, support house prices and lower foreclosures. The nature of the intervention shapes its impact, which rests on how resources are redistributed across households. The availability of bankruptcy on unsecured debt changes the response to large-scale mortgage relief by reducing precautionary savings.
Persistent Debt and Business Cycles in an Economy with Production Heterogeneity
We examine the role of debt in amplifying and propagating recessions. Firms’ debt adjustment makes recessions deeper but makes expansions gradual. In particular, when the aggregate business leverage is ten percentage points above average, the half-life of the recovery doubles.
Heterogeneity and Monetary Policy: A Thematic Review
The theory that rich economic diversity of businesses and households both affects and is shaped by economy-wide fluctuations has strong implications for monetary policy. This review places these insights in a Canadian context.
A Generalized Endogenous Grid Method for Default Risk Models
Models with default options are hard to solve. We propose an extension of the endogenous grid method that solves default risk models more efficiently and accurately.
Journal publications
"A Generalized Endogenous Grid Method for Default Risk Models"
(with Youngsoo Jang), Journal of Money, Credit and Banking (2024).