Césaire Meh

Senior Research Officer


Césaire Meh was appointed Senior Research Officer of Economic and Financial Research, effective November 1, 2017. In this capacity, he provides intellectual leadership to Bank-wide research, especially on issues related to the nexus between monetary policy and financial stability and to macroprudential policies. He has published extensively in peer-refereed journals and was recently a Visiting Research Scholar at Princeton University.

Most recently, Mr. Meh was the Managing Director of the International Economic Analysis Department. There, he was responsible for the management and strategic direction of the department, for providing policy advice and analysis on global economic and financial developments, and for participating in various international policy forums such as the G20, G7 and International Monetary Fund. He has represented the Bank in the G20 Framework Working Group, the Macroprudential Supervision Group of the Basel Committee on Banking Supervision (BCBS) and the Macroeconomic Assessment Group of the Financial Stability Board. For the latter, he led the production of the Bank of Canada report, Strengthening International Capital and Liquidity Standards: A Macroeconomic Impact Assessment for Canada. He also chaired the workstream on the implementation of the Basel III countercyclical capital buffer.

Mr. Meh joined the Bank in 2001 as an economist in the former Monetary and Financial Analysis Department (MFA). He increasingly assumed greater responsibilities in his roles as Principal Researcher, Assistant Director of the monetary financial modelling division in MFA, Senior Research Director in the Canadian Economic Analysis Department and Senior Policy Director in the Financial Stability Department (FSD). He was then named the Deputy Managing Director of FSD, where he assisted the Managing Director in the management of the department and oversaw FSD’s contributions to the Bank’s semi-annual Financial System Review and the work on bail-ins of large Canadian banks, as well as its support for the Bank in its role as lender of last resort.

Mr. Meh’s research has focused on bank capital in macroeconomic models, the nexus between financial stability and monetary policy; the design of macroprudential policies; the distributional consequences of monetary policy; the mix between monetary, fiscal and macroprudential policies; and, more recently, fintech.

Born in Yamoussoukro, Ivory Coast, Mr. Meh holds a PhD in economics from Western University and a master’s degree in economics from Université Laval.

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Staff Discussion Papers

Household Debt, Assets, and Income in Canada: A Microdata Study

Staff Discussion Paper 2009-7 Césaire Meh, Yaz Terajima, David Xiao Chen, Thomas J. Carter
The authors use microdata from the 1999 and 2005 Surveys of Financial Security to identify changes in household debt, and discuss their potential implications for monetary policy and financial stability. They document an increase in the debt-income ratio, which rose from 0.75 to 0.95, on average.

Staff Working Papers

The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity

We document that, across households, the money consumption ratio increases with age and decreases with consumption, and that there has been a large increase in the money consumption ratio during the recent era of very low interest rates. We construct an overlapping generations (OLG) model of money holdings for transaction purposes subject to age (older households use more money), cohort (younger generations are exposed to better transaction technology), and time effects (nominal interest rates affect money holdings).
Content Type(s): Staff Research, Staff Working Papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E2, E21, E4, E41

Housing Market Dynamics and Macroprudential Policy

Staff Working Paper 2016-31 Gabriel Bruneau, Ian Christensen, Césaire Meh
We perform an analysis to determine how well the introduction of a countercyclical loanto- value (LTV) ratio can reduce household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation.

Effects of Funding Portfolios on the Credit Supply of Canadian Banks

Staff Working Paper 2015-10 H. Evren Damar, Césaire Meh, Yaz Terajima
This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans.

A Policy Model to Analyze Macroprudential Regulations and Monetary Policy

Staff Working Paper 2014-6 Sami Alpanda, Gino Cateau, Césaire Meh
We construct a small-open-economy, New Keynesian dynamic stochastic general-equilibrium model with real-financial linkages to analyze the effects of financial shocks and macroprudential policies on the Canadian economy. Our model has four key features.

Macroprudential Rules and Monetary Policy when Financial Frictions Matter

Staff Working Paper 2012-6 Jeannine Bailliu, Césaire Meh, Yahong Zhang
This paper examines the interaction between monetary policy and macroprudential policy and whether policy makers should respond to financial imbalances. To address this issue, we build a dynamic general equilibrium model that features financial market frictions and financial shocks as well as standard macroeconomic shocks.

Bank Leverage Regulation and Macroeconomic Dynamics

Staff Working Paper 2011-32 Ian Christensen, Césaire Meh, Kevin Moran
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.

Innovation and Growth with Financial, and Other, Frictions

Staff Working Paper 2011-25 Jonathan Chiu, Césaire Meh, Randall Wright
The generation and implementation of ideas, or knowledge, is crucial for economic performance. We study this process in a model of endogenous growth with frictions.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Potential output, Productivity JEL Code(s): E, E4, G, G2, O, O3, O4

Leverage, Balance Sheet Size and Wholesale Funding

Staff Working Paper 2010-39 H. Evren Damar, Césaire Meh, Yaz Terajima
Some evidence points to the procyclicality of leverage among financial institutions leading to aggregate volatility. This procyclicality occurs when financial institutions finance their assets with non-equity funding (i.e., debt financed asset expansions). Wholesale funding is an important source of market-based funding that allows some institutions to quickly adjust their leverage.

Real Effects of Price Stability with Endogenous Nominal Indexation

Staff Working Paper 2009-16 Césaire Meh, Vincenzo Quadrini, Yaz Terajima
We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because nominal prices are observed with delay as in Jovanovic & Ueda (1997).

Uninsurable Investment Risks and Capital Income Taxation

Staff Working Paper 2009-3 Césaire Meh, Yaz Terajima
This paper studies the capital accumulation and welfare implications of reducing capital income taxation in a general equilibrium economy with uninsurable investment risks.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models JEL Code(s): E, E2, E21, E22, E6, E62, G, G3, G32, H, H2, H24, H25

Journal Publications

Refereed journals

Other publications

  • "Essays in Entrepreneurship and Taxation".
    Doctorate Dissertation, University of Western Ontario, May 2001."Cycle économique dans une petite économie ouverte: cas du Canada."
    Master's Dissertation, Université Laval, August 1996.

Other research papers

  • "Bank Leverage Regulation and Macroeconomics Dynamics,"
    (with Kevin Moran). Manuscript, June 2010.
  • "Countercyclical Loan-to-Value Ratios and Monetary Policy"
    (with Ian Christensen). Manuscript, June 2010.
  • "Optimal Monetary Policy and Macrofinancial Risk: Should Monetary Policy Respond to Emerging Financial Imbalances?"
    (with Jeannine Bailliu and Yahong Zhang). Manuscript, September 2010.

Research in progress

  • "Inflation, Demand for Liquidity, and Welfare,"
    (with Shutao Cao, Victor Rios-Rull and Yaz Terajima)
  • "Effects of Funding Portfolios on Credit Supplies of Canadian Banks,"
    (with Evren Damar and Yaz Terajima)
  • "Firm Size, Technology Adoption Costs and Aggregate Productivity,"
    (with Danny Leung and Yaz Terajima).
  • "Price Stability and Nominal Debt,"
    (with Vincenzo Quadrini and Yaz Terajima).