Gino Cateau was appointed Deputy Managing Director of the Bank’s Financial Stability Department (FSD), effective March 18, 2019. In this capacity, he is a member of the Bank’s senior management team, providing leadership and strategic direction to FSD, and helping oversee analysis and research on risks to financial stability and their implications for policy.
Gino joined the Bank in 2004 as a Senior Analyst with the Canadian Economic Analysis Department and has since held increasingly senior positions, most recently a Senior Policy Director in the International Economic Analysis Department. He has worked on the assessment of household vulnerabilities, developed macroeconomic models with financial linkages to analyze the interaction between monetary and macroprudential policy, analyzed the implications of uncertainty on monetary policy decisions, and the design of robust policy frameworks.
Born in Mauritius, Gino has a BSc and MSc in econometrics and mathematical economics from the London School of Economics, and a PhD in economics from the University of Chicago.
Staff Working Papers
This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path.
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.
Using the Bank of Canada's main projection and policy-analysis model, ToTEM, this paper measures the welfare gains of switching from inflation targeting to price-level targeting under imperfect credibility. Following the policy change, private agents assign a probability to the event that the policy-maker will revert to inflation-targeting next period.
This paper proposes a simple analytical method to determine the stationarity of an unnormalized variable from the solution to a normalized model i.e. a model whose variables must be expressed in relative terms or must be differenced for a solution to exist.
The purpose of this paper is to make a quantitative contribution to the inflation versus price level targeting debate. It considers a policy-maker that can set policy either through an inflation targeting rule or a price level targeting rule to minimize a quadratic loss function using the actual projection model of the Bank of Canada (ToTEM).
How can policy-makers avoid large policy errors when they are uncertain about the true model of the economy?
Policy-makers in the United States over the past 15 to 20 years seem to have been cautious in setting policy: empirical estimates of monetary policy rules such as Taylor's (1993) rule are much less aggressive than those derived from optimizing models.
- "Monetary Policy under Model and Data-Parameter Uncertainty"
Journal of Monetary Economics, vol. 54(7), pp 2083-2101, October 2007.
- "Price Level versus Inflation Targeting under Model Uncertainty"
Canadian Journal of Economics, vol. 50(2), May 2017 (Harry Johnson award for best paper published in CJE in 2017).
- "A policy model to analyze macroprudential regulations and monetary policy"
(with Sami Alpanda and Césaire Meh), Canadian Journal of Economics, vol. 51(3), August 2018.