Yaz Terajima


Yaz Terajima is the Director of the Financial Studies Division in the Financial Stability Department. His primary research interests include macroeconomic implications of household and firm finances, banking and monetary policy. Specific topics include distributive effects of inflation across households, wealth accumulation based on occupational and educational choices, small business bankruptcy and bank leverage dynamics. He holds a Ph.D. from the University of Pennsylvania.


Yaz Terajima

Financial Stability
Financial Studies

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

Curriculum vitae


Redistributive Effects of a Change in the Inflation Target

Staff Analytical Note 2017-13 Robert Amano, Thomas J. Carter, Yaz Terajima
In light of the financial crisis and its aftermath, several economists have argued that inflation-targeting central banks should reconsider the level of their inflation targets. While the appropriate level for the inflation target remains an open question, it’s important to note that any transition to a new target would entail certain costs.

The Global Financial Cycle, Monetary Policies and Macroprudential Regulations in Small, Open Economies

This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across borders.

Effects of Funding Portfolios on the Credit Supply of Canadian Banks

Staff Working Paper 2015-10 H. Evren Damar, Césaire Meh, Yaz Terajima
This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans.

Canadian Bank Balance-Sheet Management: Breakdown by Types of Canadian Financial Institutions

Staff Discussion Paper 2012-7 David Xiao Chen, H. Evren Damar, Hani Soubra, Yaz Terajima
The authors document leverage, capital and liquidity ratios of banks in Canada. These ratios are important indicators of different types of risk with respect to a bank’s balance‐sheet management. Particular attention is given to the observations by different types of banks, including small banks that historically received less attention.

August 16, 2012 An Analysis of Indicators of Balance-Sheet Risks at Canadian Financial Institutions

This article examines four indicators of balance-sheet risks—leverage, capital, asset liquidity and funding—among different types of financial institutions in Canada over the past three decades. It also discusses relevant developments in the banking sector that could have contributed to the observed dynamics. The authors find that the various risk indicators decreased during the period for most of the non-Big Six financial institutions, but remained relatively unchanged for the Big Six banks. In addition, the balance-sheet risk indicators became more heterogeneous across financial institutions. The observed overall decline and increased heterogeneity follow certain regulatory changes, such as the introduction of the liquidity guidelines on funding in 1995 and the implementation of bank-specific leverage requirements in 2000. Given that these regulations required more balance-sheet risk management, they have likely contributed to the increased resilience of the banking sector.

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Refereed Journals

  • "Leverage, Balance-Sheet Size and Wholesale Funding,"
    (with Evren Damar and Césaire Meh), Journal of Financial Intermediation, 22(4), 639-662 (2013).
  • "Inflation, Nominal Portfolios, and Wealth Redistribution in Canada,"
    (with Césaire A. Meh), Canadian Journal of Economics 44(4), 1369-1402 (2011).
  • "Aggregate and Welfare Effects of Redistribution of Wealth Under Inflation and Price-Level Targeting,"
    (with Césaire A. Meh and José-Víctor Ríos-Rull), Journal of Monetary Economics 57(6), 637-652 (2010).
  • "Uninsurable Investment Risks and Capital Income Taxation,"
    (with Césaire A. Meh). Annals of Finance 5(3), 521-541 (2009).


  • Ph.D., University of Pennsylvania (2004)
  • M.A. Claremont Graduate University (1998)
  • B.A. in economics, University of Hawaii at Hilo (1995)
  • B.A. in business, University of Hawaii at Hilo (1995)

Research Interests

  • Quantitative Macroeconomic Theory
  • Monetary Policy
  • Household and Firm Dynamics
  • Labour Economics
  • Financial Economics


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