José Dorich

Senior Policy Director



José Dorich is a Senior Policy Director in the International Economic Analysis Department (INT). In this capacity, he is a member of the Bank’s senior management team. He has responsibility for overseeing INT’s model development activities and providing leadership on the analysis of the global economy.

Mr. Dorich joined the Bank in 2008 as a Senior Analyst in the Canadian Economic Analysis Department (CEA). Since then, he has held increasingly senior positions. In 2014, he became Director of the Model Development Division in CEA. In this role, he led, coordinated and conducted research supporting the 2016 renewal of the inflation-control agreement. He also led the team responsible for the development of ToTEM III, the most recent version of the Bank’s main structural macroeconomic model.

Throughout his career, Mr. Dorich has accumulated significant knowledge and expertise in model development and monetary policy analysis. His primary research interests include macroeconomic theory, monetary economics and applied macroeconomics. Specific topics include inflation dynamics, the neutral rate of interest, unconventional monetary policies and monetary framework issues.

Born in Lima, Perú, Mr. Dorich holds a PhD in Economics from Universitat Pompeu Fabra.

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Staff Analytical Notes

The Neutral Rate in Canada: 2019 Update

Staff Analytical Note 2019-11 Thomas J. Carter, Xin Scott Chen, José Dorich
This note provides an update on Bank of Canada staff’s assessment of the Canadian neutral rate. The neutral rate is the policy rate needed to keep output at its potential level and inflation at target once the effects of any cyclical shocks have dissipated. This medium- to long-run concept serves as a benchmark for gauging the degree of monetary stimulus provided by a given policy setting.

Weakness in Non-Commodity Exports: Demand versus Supply Factors

Staff Analytical Note 2018-28 José Dorich, Vadym Lepetyuk, Jonathan Swarbrick
We use the Terms-of-Trade Economic Model (ToTEM) to conduct demand- and supply-driven simulations, both of which deliver weakness in Canadian non-commodity exports relative to foreign activity in line with recent data.

What Is Restraining Non-Energy Export Growth?

This note summarizes the key findings from Bank of Canada staff analytical work examining the reasons for the recent weakness in Canadian non-energy exports. Canada steadily lost market share in US non-energy imports between 2002 and 2017, mostly reflecting continued and broad-based competitiveness losses.

The Neutral Rate in Canada: 2018 Estimates

Staff Analytical Note 2018-22 Xin Scott Chen, José Dorich
The neutral nominal policy rate serves as a benchmark for assessing the degree of monetary stimulus and provides a medium- to long-run anchor for the policy rate. Since quantitative measures of the neutral rate are subject to considerable uncertainty, Bank staff rely on four different approaches to estimate the Canadian neutral rate.

Staff Working Papers

Could a Higher Inflation Target Enhance Macroeconomic Stability?

Recent international experience with the effective lower bound on nominal interest rates has rekindled interest in the benefits of inflation targets above 2 per cent. We evaluate whether an increase in the inflation target to 3 or 4 per cent could improve macroeconomic stability in the Canadian economy.

Resurrecting the Role of Real Money Balance Effects

Staff Working Paper 2009-24 José Dorich
I present a structural econometric analysis supporting the hypothesis that money is still relevant for shaping inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively important, although smaller than they used to be in the early postwar period.

Journal Publications

Other research

  • “Price Level Targeting, the Zero Lower Bound on the Nominal Interest Rate and Imperfect Credibility”
    (with Gino Cateau)
  • “Imperfect Asset Substitution in a Small Open Economy Model”
    (with Rhys Mendes and Yang Zhang)
  • “Forward-Looking versus Backward-Looking Behavior in Inflation Dynamics: a New Test”
  • “The Welfare Losses of Price Rigidities”