Ben Tomlin is a Senior Research Director in the International Economic Analysis Department at the Bank of Canada. His primary research interests centre on the analysis of price adjustment, firm dynamics, and international trade in open economies using large micro data sets. Specific topics include exchange rate pass-through, the role of firm relationships in driving aggregate outcomes, and the use of structural models to explore the relationship between international shocks, firm-level adjustment and aggregate productivity. Ben Tomlin received his PhD in economics from Boston University.
Using highly disaggregated transaction-level trade data, we document the importance of new firm level trade partner relationships and the addition of new products to existing relationships in driving long-run import flows.
We construct an alternative scenario in which trend labour input and business investment are stronger than that expected in the Bank of Canada’s base-case projection in the October 2017 Monetary Policy Report.
This note summarizes the Bank of Canada’s annual reassessment of potential output growth, conducted for the April 2017 Monetary Policy Report. Potential output growth is projected to increase from 1.3 per cent in 2017 to 1.6 per cent by 2020.
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms.
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks need to be more fully specified (Côté 2014).