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September 22, 2025

Equity, diversity and inclusion at the Bank

Even though the world around us is continuously changing, the Bank remains grounded in its values and the knowledge that being diverse, inclusive and equitable enables us to do our best work for all Canadians.

Jeongwoo Moon

Jeongwoo Moon is a Senior Economist in the Financial Stability Department at the Bank of Canada.

Credit Conditions, Inflation, and Unemployment

Staff Working Paper 2025-26 Chao Gu, Janet Hua Jiang, Liang Wang
We identify two channels that affect the relationship between inflation and unemployment. First, inflation lowers wages because unemployed suffer more from inflation than employed, generating a positive relationship. Second, inflation increases firms’ financing costs, generating a negative relationship. Improvements in firm financing conditions can induce the relationship to switch signs.
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