Bio

Wei Dong is the director in the Monetary Policy and Financial Studies division of the Canadian Economic Analysis Department at the Bank of Canada. Her research interests are open economy macroeconomics and international finance. Wei received her PhD in economics from the University of Wisconsin, Madison.

Research Field(s): International Macroeconomics International Trade and Finance Monetary and Fiscal Policy

Staff research

Assessing the US and Canadian neutral rates: 2025 update

Staff analytical note 2025-16 Frida Adjalala, Felipe Alves, William Beaudoin, Hélène Desgagnés, Wei Dong, Ingomar Krohn, Jan David Schneider
We assess both the US and Canadian nominal neutral rates to be in the range of 2.25% to 3.25%, unchanged from the range assessed in 2024.
Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E40, E43, E5, E50, E52, E58, F, F4, F41 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Real economy and forecasting, Structural challenges, Demographics and labour supply

Assessing the US and Canadian neutral rates: 2024 update

Staff analytical note 2024-9 Frida Adjalala, Felipe Alves, Hélène Desgagnés, Wei Dong, Dmitry Matveev, Laure Simon
We assess both the US and Canadian nominal neutral rates to be in the range of 2.25% to 3.25%, somewhat higher than the range of 2.0% to 3.0% in 2023. The assessed range is back to the level it was at in April 2019.
Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E40, E43, E5, E50, E52, E58, F, F4, F41 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, Demographics and labour supply

Complementarities Between Fiscal Policy and Monetary Policy—Literature Review

Staff discussion paper 2021-4 Wei Dong, Geoffrey R. Dunbar, Christian Friedrich, Dmitry Matveev, Romanos Priftis, Lin Shao
This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.
Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E52, E58, E6, E62, E63 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation, Real economy and forecasting

Production Networks and the Propagation of Commodity Price Shocks

Staff working paper 2020-44 Shutao Cao, Wei Dong
We examine the macro implications of commodity price shocks in a model with multiple production sectors that are interconnected within a commodity-exporting small open economy.
Content Type(s): Staff research, Staff working papers JEL Code(s): D, D5, D57, F, F4, F41 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Real economy and forecasting, Structural challenges, International trade, finance and competitiveness

Trade Flows and Exchange Rates: Importers, Exporters and Products

Staff working paper 2019-41 Michael Devereux, Wei Dong, Ben Tomlin
Using highly disaggregated transaction-level trade data, we document the importance of new firm-level trade partner relationships and the addition of new products to existing relationships in driving aggregate trade flows.
Content Type(s): Staff research, Staff working papers JEL Code(s): F, F1, F4 Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness

Non-Performing Loans, Fiscal Costs and Credit Expansion in China

Staff working paper 2018-53 Huixin Bi, Yongquan Cao, Wei Dong
This paper studies how the credit expansion policy pursued by the Chinese government in an effort to stimulate its economy in the post-crisis period affects bank–firm loan contracts and the macroeconomy. We build a structural model with financial frictions in which the optimal loan contract reflects the trade-off between leverage and the probability of default.
Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E44, E6, E62 Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit, Models and tools, Economic models, Monetary policy, Real economy and forecasting

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Bank publications

Bank of Canada Review articles

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Journal publications

Refereed journals

  • “Production networks and the macroeconomic impacts of commodity price shocks”
    (with Shutao Cao), Canadian Journal of Economics, May 2025, Volume 58, Issue 2, Pages 690-715.
  • “Trade flows and exchange rates: Importers, exporters and products”
    (with Michael Devereux and Ben Tomlin), Journal of International Economics, March 2025, Volume 154, Article 104044.
  • "Credit Guarantee and Fiscal Costs"
    (with Huixin Bi and Yongquan Cao), Journal of Money, Credit and Banking, February 2023, Volume 56, Issue 5, Pages 1203-1234.
  • “Importers and Exporters in Exchange Rate Pass-Through and Currency Invoicing”
    (with Michael Devereux and Ben Tomlin), Journal of International Economics, March 2017, Volume 105, Pages 187-204.
  • “Pricing-to-Market, Currency Invoicing and Exchange Rate Pass-Through to Producer Prices”
    (with Shutao Cao and Ben Tomlin), Journal of International Money and Finance, 58, November 2015: 128-149.
  •  “Do Central Banks Respond to Exchange Rate Movements? Some New Evidence from Structural Estimation”
    Canadian Journal of Economics, 46(2), May 2013: 555-586.
  • “The Quantitative Importance of the Expenditure-Switching Effect”
    Open Economies Review, 24(2), 2013: 311-338.
  • “Exchange Rates and Individual Good's Price Misalignment: Evidence of Long-horizon Predictability”
    (with Deokwoo Nam), Journal of International Money and Finance, 32, February 2013: 611-636.
  • “The Role of Expenditure Switching in the Global Imbalance Adjustment”
    Journal of International Economics, 86(2), March 2012: 237-251.