Bio

Janet Jiang is the Research Director of the Research Team in the Banking and Payments Department. Janet obtained her PhD in Economics from Simon Fraser University in 2007. She builds theoretical models and runs surveys and controlled laboratory experiments to study inflation, asset trading, bank runs, currency competition, payment competition and central bank digital currencies.
Her work has been published in Journal of Political Economy, Journal of Monetary Economics, Journal of Economic Theory, Review of Economic Dynamics, Canadian Journal of Economics, European Economic Review, Journal of Behavioral and Experimental Finance, Journal of Economic Behavior & Organization, and Journal of Economic Dynamics and Control.

Research Field(s): Banking Digital Currency Digital Economy Experimental Economics Financial Markets Household Finance Macroeconomic Theory Monetary Economics Retail Payments Two-Sided Markets

Staff research

Credit Conditions, Inflation, and Unemployment

Staff working paper 2025-26 Chao Gu, Janet Hua Jiang, Liang Wang
We identify two channels that affect the relationship between inflation and unemployment. First, inflation lowers wages because unemployed suffer more from inflation than employed, generating a positive relationship. Second, inflation increases firms’ financing costs, generating a negative relationship. Improvements in firm financing conditions can induce the relationship to switch signs.
Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E24, E3, E31, E4, E44, E5, E51 Research Theme(s): Financial system, Household and business credit, Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting

How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms

Staff working paper 2024-44 Janet Hua Jiang, Rupal Kamdar, Kelin Lu, Daniela Puzzello
We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending.
Content Type(s): Staff research, Staff working papers JEL Code(s): D, D1, D15, D8, D84, E, E2, E5, E52, E7 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting

Pricing Indefinitely Lived Assets: Experimental Evidence

Staff working paper 2023-25 John Duffy, Janet Hua Jiang, Huan Xie
We study the trading of an asset with bankruptcy risk. The traded price of the asset is, on average, 40% of the expected total dividend payments. We investigate which economic models can explain the low traded price.
Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C91, C92, D, D8, D81, G, G1, G12 Research Theme(s): Financial markets and funds management, Market functioning, Models and tools, Econometric, statistical and computational methods

Inflation, Output, and Welfare in the Laboratory

Staff working paper 2023-11 Janet Hua Jiang, Daniela Puzzello, Cathy Zhang
We investigate the effect of inflation on output and welfare in the laboratory. Consistent with monetary theory, we find that inflation acts as a tax on monetary exchange and reduces output and welfare.
Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission

Central Bank Digital Currencies and Banking: Literature Review and New Questions

Staff discussion paper 2023-4 James Chapman, Jonathan Chiu, Mohammad Davoodalhosseini, Janet Hua Jiang, Francisco Rivadeneyra, Yu Zhu
We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending and liquidity and maturity transformation. We also take a broader look at CBDCs and highlight two promising directions for future research.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E50, E58, G, G0, G00, L, L0, L00 Research Theme(s): Financial system, Financial institutions and intermediation, Money and payments, Digital assets and fintech, Payment and financial market infrastructures

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Journal publications

Journal articles

  • "Adoption of a New Payment Method: Evidence from the Laboratory",
    (with Jasmina Arifovic and John Duffy), 2023, European Economic Review 104410.
  • "Inflation, Output and Welfare in the Laboratory",
    (with Daniela Puzzello and Cathy Zhang), 2023, European Economic Review, 152.
  • "Bank Market Power and Central Bank Digital Currency: Theory and Quantitative Assessment",
    (with Jonathan Chiu, Mohammad Davoodalhosseini and Yu Zhu), 2023, Journal of Political Economy, 131.
  • "How Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary Economy",
    (with Daniela Puzzello and Cathy Zhang), 2021, Journal of Economic Behavior & Organization, 184, 278-301.
  • "The Cash Paradox",
    (with Enchuan Shao), 2020, Review of Economic Dynamics, 36, 177-197.
  • "Strategic Uncertainty and the Power of Extrinsic Signals – Evidence from an Experimental Study of Bank Runs",
    (with Jasmina Arifovic), 2019, Journal of Economic Behavior & Organization , 167, 1-17.
  • "Competing Currencies in the Laboratory",
    (with Cathy Zhang), 2018, Journal of Economic Behavior & Organization, 154(C), 253-280.
  • "Interest on Cash, Fundamental Value Process and Bubble Formation: An Experimental Study",
    (with Giovanni Giusti and Yiping Xu), 2016, Journal of Behavioral and Experimental Finance, 11(C), 44-51.
  • "Money and Price Posting under Private Information",
    (with Mei Dong), 2014, Journal of Economic Theory, 150, 740-777.
  • "Experimental Evidence of Bank Runs as Pure Coordination Failures",
    (with Jasmina Arifovic and Yiping Xu), 2013, Journal of Economic Dynamics and Control, 37, 2446-2465.
  • "One or Two Monies?",
    (with Mei Dong), 2010, Journal of Monetary Economics, 57, 439-450.
  • "Banking Crises in Monetary Economies", 2008, Canadian Journal of Economics, 41, 80-104.

Other

  • "Is Money Essential? An Experimental Approach",
    (with Peter Norman, Daniela Puzzello, Bruno Sultanum and Randall Wright), R&R at Journal of Political Economy.
  • "Pricing Indefinitely Lived Assets: Experimental Evidence",
    (with John Duffy and Huan Xie), R&R at Management Science.