Guihai Zhao is a Senior Economist in the Financial Markets Department at the Bank of Canada. He is a financial economist whose research interests include asset pricing and monetary economics. Guihai Zhao received his PhD in economics from Boston University.
Equilibrium bond-pricing models rely on inflation being bad news for future growth to generate upward-sloping nominal yield curves. We develop a model that can generate upward-sloping nominal and real yield curves by instead using ambiguity about inflation and growth.