Martin Harding is a Principal Researcher in the Financial Stability 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

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Staff working papers

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.

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Journal publications

Refereed journals