Bio

Martin Harding is a Principal Economist in the Canadian Economic Analysis Department at the Bank of Canada. Martin obtained his PhD in economics at DIW Berlin and Freie Universität Berlin. His research interests lie in macroeconomics and monetary economics, focusing on the transmission of monetary policy and the role of financial frictions in business cycle analysis.

Research Field(s): Business Cycles Monetary Economics

Staff working papers

Understanding Post-COVID Inflation Dynamics

Staff Working Paper 2022-50 Martin Harding, Jesper Lindé, Mathias Trabandt
We propose a macroeconomic model with a nonlinear Phillips curve that has a flat slope when inflationary pressures are subdued and steepens when inflationary pressures are elevated. Our model can generate more sizable inflation surges due to cost-push and demand shocks than a standard linearized model when inflation is high.
Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Central bank research, Coronavirus disease (COVID-19), Economic models, Inflation and prices, Inflation: costs and benefits, Monetary policy, Monetary policy implementation JEL Code(s): E, E3, E30, E31, E32, E37, E4, E44, E5, E52

Risk and State-Dependent Financial Frictions

Staff Working Paper 2022-37 Martin Harding, Rafael Wouters
Using a nonlinear New Keynesian model with a financial accelerator, we show that financial frictions generate large state-dependent amplification effects. Shocks propagate more strongly in periods of financial stress. We propose an endogenous regime-switching DSGE framework for efficient estimation and improved model fit.
Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Credit and credit aggregates, Financial stability, Monetary policy JEL Code(s): E, E5, E52, E58

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Journal publications

Refereed journals