Josef Schroth

Principal Researcher

Josef Schroth is a Principal Researcher in the Financial Stability Department at the Bank of Canada. He is a macroeconomist whose primary research interests center on applying contract theory in market as well as non-market environments. Specific topics include financial market regulation and international policy coordination. Josef Schroth received his PhD in economics from UCLA.


Principal Researcher
Financial Stability
Financial Studies

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9


Macroprudential Policy with Capital Buffers

Staff Working Paper 2019-8 Josef Schroth
The countercyclical capital buffer is part of Basel III, the set of regulatory measures developed in response to the financial crisis of 2007–09. This study focuses on how time-varying capital buffers can address inefficiencies in economies with endogenous financial crises.

Optimal Capital Regulation

Staff Working Paper 2017-6 Stéphane Moyen, Josef Schroth
We study constrained-efficient bank capital regulation in a model with market-imposed equity requirements. Banks hold equity buffers to insure against sudden loss of access to funding. However, in the model, banks choose to only partially self-insure because equity is privately costly.

Capital Flows to Developing Countries: Is There an Allocation Puzzle?

Staff Working Paper 2016-53 Josef Schroth
Foreign direct investment inflows are positively related to growth across developing countries—but so are savings in excess of investment. I develop an explanation for this well-established puzzle by focusing on the limited availability of consumer credit in developing countries together with general equilibrium effects.

Supervising Financial Regulators

Staff Working Paper 2016-52 Josef Schroth
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly.

Financial Crisis Interventions

Staff Working Paper 2016-29 Josef Schroth
This paper develops a model of an economy where bank credit supports both productive investment and individual consumption smoothing in the face of idiosyncratic income risk. Bank credit is constrained by bank equity capital.

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Refereed journals

  • “Managerial Compensation and Stock Price Manipulation.”
    Journal of Accounting Research, vol. 56, no. 5, p. 1335-1381 (2018).
  • “Optimal Intermediary Rents.”
    American Economic Journal: Macroeconomics, vol. 8, no. 1, p. 98-118 (2016).


  • Ph.D. Economics, UCLA, 2011
  • MSc Economics and Econometrics, Southampton University, 2006
  • BSc Economics and Business, Goethe University Frankfurt, 2005

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