Jing Yang

Author

Staff research

Monetary Policy in an AI-Driven Two-Speed Economy

Staff working paper 2026-27 Joshua Brault, Maryam Haghighi, Jing Yang
We analyze monetary policy responses to AI in a two-sector New Keynesian model, distinguishing augmentation and automation. Both reduce labor demand, requiring accommodation that creates inflation trade-offs. Automation worsens them. Aggregate inflation depends on AI’s form and breadth, making policy stabilization more complex and aggregate data potentially misleading.
Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E24, E3, E31, E32, E5, E52, J, J2, J23, O, O3, O33 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Structural challenges, Digitalization and productivity

Supply and Demand-Driven inflation: Decomposition and policy implications

Staff analytical paper 2026-33 Kira Kang, Rodrigo Sekkel, Temel Taskin, Jing Yang
This note uses detailed expenditure data to decompose Canadian inflation into supply- and demand-driven components. The analysis sheds light on the drivers of post-pandemic inflation and shows that monetary policy primarily affects and responds to demand-driven inflation.
Content Type(s): Staff research, Staff analytical paper JEL Code(s): E, E3, E31, E5, E52, E58 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission

AI Paradox: Promise vs. Reality—What It Means for Monetary Policy

Staff analytical paper 2026-4 Joshua Brault, Maryam Haghighi, Jing Yang
This note reviews the emerging evidence on AI’s labour-market and productivity effects, highlighting early task-level impacts, sizable micro level productivity gains, and the macroeconomic challenges these pose for monetary policy during the transition.
Content Type(s): Staff research, Staff analytical paper JEL Code(s): E, E2, E24, E3, E31, E5, E50, E52, E58 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Structural challenges, Digitalization and productivity

Interaction of Macroprudential and Monetary Policies: Practice Ahead of Theory

Staff discussion paper 2024-18 Thibaut Duprey, Yaz Terajima, Jing Yang
We draw on the Canadian experience to examine how monetary and macroprudential policies interact and possibly complement each other in achieving their respective price and financial stability objectives.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E3, E37, E5, E52, E58, E6, E61, G, G0, G01, G2, G21, G28 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit, Monetary policy, Monetary policy framework and transmission

Predicting Changes in Canadian Housing Markets with Machine Learning

Staff discussion paper 2023-21 Johan Brannlund, Helen Lao, Maureen MacIsaac, Jing Yang
We apply two machine learning algorithms to forecast monthly growth of house prices and existing homes sales in Canada. Although the algorithms can sometimes outperform a linear model, the improvement in forecast accuracy is not always statistically significant.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): A, C, C4, C45, C5, C53, D, D2, R, R2, R3 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting

COVID-19 and Financial Stability: Practice Ahead of Theory

Staff discussion paper 2022-18 Jing Yang, Hélène Desgagnés, Grzegorz Halaj, Yaz Terajima
The COVID-19 pandemic uncovered policy challenges related to the economic measures that were taken to support the economy. Two years later, we attempt to identify the broader impact of these measures and research that needs to follow.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E58, E6, E61, G, G2, G21, H, H3, H8, H84 Research Theme(s): Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Household and business credit, Monetary policy, Real economy and forecasting

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Bank publications

Bank of Canada Review articles

May 11, 2017

Unconventional Monetary Policy: The Perspective of a Small Open Economy

Bank of Canada Review - Spring 2017 Jean-Sébastien Fontaine, Lena Suchanek, Jing Yang
How do unconventional monetary policies like quantitative easing and negative interest rates affect domestic financial conditions and the broader economy in small open econo-mies, such as Canada? These policies are effective in depreciating the exchange rate in small open economies, while lower interest rates are also passed through to the economy, albeit only partially. When conventional monetary policy is close to its limits, fiscal policy may be a more important complement to monetary policy in a small economy, particularly if global demand for safe assets compresses long-term interest rates.
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E5, E52, E58, E6, E61, E65
May 16, 2016

Estimating Canada’s Effective Lower Bound

Bank of Canada Review - Spring 2016 Jonathan Witmer, Jing Yang
Recently, the Bank of Canada has estimated the effective lower bound (ELB) on its policy interest rate to be about -50 basis points. This article outlines the analysis that underpins that estimate by quantifying the costs of storing and using cash in Canada. It also explores how some international markets have adapted to negative interest rates, issues surrounding their implementation, as well as their transmission to other interest rates in the economy. Finally, it discusses theoretical ideas on how the ELB could be reduced further.
Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): D, D5, D53, E, E4, E43, E5, E52, E58

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