Bio

Yinxi Xie is a Senior Economist in the Model Development Division of the Canadian Economic Analysis Department. His research interests lie in the fields of Monetary Economics, International Macroeconomics, Behavioral Macroeconomics, and International Finance. Yinxi receives his Ph.D. in Economics from Columbia University, USA.

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Staff working papers

(Un)Conventional Monetary and Fiscal Policy

Staff Working Paper 2023-6 Jing Cynthia Wu, Yinxi Xie
We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments.
Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E4, E6, E61, E62, E63

On the Wedge Between the PPI and CPI Inflation Indicators

Staff Working Paper 2022-5 Shang-Jin Wei, Yinxi Xie
We find that the CPI and PPI inflation indexes co-moved strongly throughout the late 20th century, but their correlation has fallen substantially since the early 2000s. We offer a structural explanation for this divergence based on the growth of global supply chains since 2000. This finding offers a unique perspective for the future design of optimal monetary policy.
Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Inflation targets, International topics, Monetary policy JEL Code(s): E, E3, E31, E5, E52, E58, F, F1, F11, F12, F4, F41, F6, F62

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight

Staff Working Paper 2021-51 Michael Woodford, Yinxi Xie
How do outcomes of monetary and fiscal stabilization policies at the zero lower bound change when decision makers have finite planning horizons in the economy? We explore the effects of limited foresight on policy tools and the interaction between monetary and fiscal policy.
Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Central bank research, Fiscal policy, Monetary policy JEL Code(s): E, E5, E52, E6, E63, E7

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Journal publications

Refereed journals

  • "Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight"
    (with Michael Woodford), Journal of Monetary Economics, forthcoming 2021.
  • "Monetary Policy in an Era of Global Supply Chains"
    (with Shang-Jin Wei), Journal of International Economics, 124: 103299 (2020).
  • "Policy Options at the Zero Lower Bound When Foresight is Limited"
    (with Michael Woodford), AEA Papers and Proceedings, 109: 433-437 (2019).
  • "Machiavellian Experimentation"
    (with Xie Yang), Journal of Comparative Economics, 45(4): 685-711 (2017).