Raphael Solomon

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April 15, 2006

Issues in Inflation Targeting: A Summary of the Bank of Canada Conference Held 28-29 April 2005

The Bank of Canada's 2005 conference focused on two critical issues: price-level targets versus inflation targets, and the appropriate level of inflation. Session topics included new methodological approaches to examining the validity of the New Keynesian Phillips curve for Canada; the monetary policy implications of border effects and the financial-accelerator model; the zero lower bound on nominal interest rates; and inflation and welfare in general-equilibrium macroeconomic models. A panel of invited speakers discussed the issues of each session, and two distinguished speakers gave their perspectives on inflation.

Ownership Concentration and Competition in Banking Markets

Staff Working Paper 2006-7 Alexandra Lai, Raphael Solomon
Many countries prohibit large shareholdings in their domestic banks.The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986).

Are Currency Crises Low-State Equilibria? An Empirical, Three-Interest-Rate Model

Staff Working Paper 2006-5 Christopher Cornell, Raphael Solomon
Suppose that the dynamics of the macroeconomy were given by (partly) random fluctuations between two equilibria: "good" and "bad."
Content Type(s): Staff Research, Staff Working Papers Topic(s): Uncertainty and monetary policy JEL Code(s): C, C6, C62, E, E5, E59, F, F4, F41

Pocket Banks and Out-of-Pocket Losses: Links between Corruption and Contagion

Staff Working Paper 2005-23 Raphael Solomon
The author describes a model with a corrupt banking system, in which bankers knowingly lend at market interest rates to back projects riskier than the market rate indicates.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial Institutions, Financial stability JEL Code(s): D, D8, D82, G, G1, G19, G2, G21

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