Bio

Jing Yang was appointed Managing Director of the Bank of Canada’s Economic and Financial Research (EFR), effective March 25, 2024. In this capacity, she oversees the entire research function of the Bank, including setting strategic priorities for Bank-wide research and supporting the Bank’s core policy mandates. In this role, she leads large-scale Bank-wide projects such as the renewal of the monetary policy framework.

Before she became Managing Director of EFR, Ms. Yang was Managing Director of the Financial Stability Department. In this role, she led the Bank’s analysis and research on issues related to the financial sector in Canada and abroad. As well, she represented the Bank at the Basel Committee on Banking Supervision, which sets global standards for banking regulations. From 2016 to 2019, Ms. Yang was Deputy Managing Director of the Canadian Economic Analysis Department, overseeing the development of models used to make projections about the Canadian economy. Before that, she served as Senior Research Director in the Bank’s Financial Markets Department.

Prior to joining the Bank of Canada, Ms. Yang worked at the Bank for International Settlements and the Bank of England, where she held various positions with increasing responsibilities. She also worked for a short time at the European Central Bank. Ms. Yang’s research has extended across almost every area of central banking. Her work on the optimal level of bank capital was covered by the Financial Times and The Economist and has been replicated by several central banks.

Ms. Yang holds a doctorate in economics from Concordia University in Montréal as well as a master of arts and a bachelor of arts in economics from Fudan University in Shanghai, China. In 2018, Ms. Yang received a Women Worth Watching leadership award from the Profiles in Diversity Journal: Leadership Defined.

Research Field(s): Agent-Based Modelling Auction Design Market Microstructure

Staff analytical notes

Alternative Scenario to the October 2017 MPR Base-Case Projection: Higher Potential Growth

Staff Analytical Note 2017-18 Jing Yang, Ben Tomlin, Olivier Gervais
We construct an alternative scenario in which trend labour input and business investment are stronger than that expected in the Bank of Canada’s base-case projection in the October 2017 Monetary Policy Report.
Content Type(s): Staff research, Staff analytical notes Topic(s): Inflation and prices, Monetary policy, Potential output JEL Code(s): E, E2, E22, E24, E27, E5

Estimating Canada’s Effective Lower Bound

Staff Analytical Note 2015-2 Jonathan Witmer, Jing Yang
In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates.
Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Monetary policy framework, Monetary policy implementation JEL Code(s): D, D5, D53, E, E4, E41, E43, E5, E58

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Staff discussion papers

Interaction of Macroprudential and Monetary Policies: Practice Ahead of Theory

Staff Discussion Paper 2024-18 Thibaut Duprey, Yaz Terajima, Jing Yang
We draw on the Canadian experience to examine how monetary and macroprudential policies interact and possibly complement each other in achieving their respective price and financial stability objectives.
Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, Monetary policy JEL Code(s): E, E3, E37, E5, E52, E58, E6, E61, G, G0, G01, G2, G21, G28

Predicting Changes in Canadian Housing Markets with Machine Learning

Staff Discussion Paper 2023-21 Johan Brannlund, Helen Lao, Maureen MacIsaac, Jing Yang
We apply two machine learning algorithms to forecast monthly growth of house prices and existing homes sales in Canada. Although the algorithms can sometimes outperform a linear model, the improvement in forecast accuracy is not always statistically significant.
Content Type(s): Staff research, Staff discussion papers Topic(s): Econometric and statistical methods, Financial markets, Housing JEL Code(s): A, C, C4, C45, C5, C53, D, D2, R, R2, R3

COVID-19 and Financial Stability: Practice Ahead of Theory

Staff Discussion Paper 2022-18 Jing Yang, Hélène Desgagnés, Grzegorz Halaj, Yaz Terajima
The COVID-19 pandemic uncovered policy challenges related to the economic measures that were taken to support the economy. Two years later, we attempt to identify the broader impact of these measures and research that needs to follow.
Content Type(s): Staff research, Staff discussion papers Topic(s): Coronavirus disease (COVID-19), Financial stability, Financial system regulation and policies JEL Code(s): E, E5, E58, E6, E61, G, G2, G21, H, H3, H8, H84

Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature

Staff Discussion Paper 2020-16 Grahame Johnson, Sharon Kozicki, Romanos Priftis, Lena Suchanek, Jonathan Witmer, Jing Yang
This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies.
Content Type(s): Staff research, Staff discussion papers Topic(s): Monetary policy, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E5, E52, E58, E6, E63

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Staff working papers

A Horse Race of Monetary Policy Regimes: An Experimental Investigation

Staff Working Paper 2022-33 Olena Kostyshyna, Luba Petersen, Jing Yang
How should central banks design monetary policy in stable times and during recessions? We run a horse race between five monetary policy frameworks in an experimental laboratory to assess how well the different approaches can manage the public’s expectations and stabilize the economy.
Content Type(s): Staff research, Staff working papers Topic(s): Inflation targets, Monetary policy, Monetary policy communications, Monetary policy framework JEL Code(s): C, C9, D, D8, D84, E, E5, E52, E58

Following the Money: Evidence for the Portfolio Balance Channel of Quantitative Easing

Staff Working Paper 2018-33 Itay Goldstein, Jonathan Witmer, Jing Yang
Recent research suggests that quantitative easing (QE) may affect a broad range of asset prices through a portfolio balance channel. Using novel security-level holding data of individual US mutual funds, we establish evidence that portfolio rebalancing occurred both within and across funds.
Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E5, E58, G, G2, G23

An Empirical Analysis of Liquidity and Order Flow in the Brokered Interdealer Market for Government of Canada Bonds

Staff Working Paper 2003-28 Chris D'Souza, Charles Gaa, Jing Yang
The authors empirically measure Canadian bond market liquidity using a number of indicators proposed in the literature and detail, for the first time, price and trade dynamics in the Government of Canada secondary bond market. They find, consistent with Inoue (1999), that the Canadian brokered interdealer fixed-income market is relatively liquid for its size.
Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): G, G1, G10, G14

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Bank publications

Bank of Canada Review articles

May 11, 2017

Unconventional Monetary Policy: The Perspective of a Small Open Economy

Bank of Canada Review - Spring 2017 Jean-Sébastien Fontaine, Lena Suchanek, Jing Yang
How do unconventional monetary policies like quantitative easing and negative interest rates affect domestic financial conditions and the broader economy in small open econo-mies, such as Canada? These policies are effective in depreciating the exchange rate in small open economies, while lower interest rates are also passed through to the economy, albeit only partially. When conventional monetary policy is close to its limits, fiscal policy may be a more important complement to monetary policy in a small economy, particularly if global demand for safe assets compresses long-term interest rates.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Interest rates, Monetary policy framework, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E5, E52, E58, E6, E61, E65
May 16, 2016

Estimating Canada’s Effective Lower Bound

Bank of Canada Review - Spring 2016 Jonathan Witmer, Jing Yang
Recently, the Bank of Canada has estimated the effective lower bound (ELB) on its policy interest rate to be about -50 basis points. This article outlines the analysis that underpins that estimate by quantifying the costs of storing and using cash in Canada. It also explores how some international markets have adapted to negative interest rates, issues surrounding their implementation, as well as their transmission to other interest rates in the economy. Finally, it discusses theoretical ideas on how the ELB could be reduced further.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary policy framework, Monetary policy implementation, Monetary policy transmission JEL Code(s): D, D5, D53, E, E4, E43, E5, E52, E58

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Journal publications

Refereed journals

  • "Optimal Bank Capital"
    (with D. Miles and G Marcheggiano), The Economic Journal, Volume 123, Issue 567, March 2013, pages 1–37.
  • "Diversification and bank profitability: a nonlinear approach"
    (with L. Gambacorta and M Scatigna), Applied Economics Letters, vol 21(6), 2014, pp 438-41.
  • "Network Theory and Financial Instability"
    (with A. Alentorn and E. Nier), Journal of Economic Dynamics and Control, Volume 31, Issue 6, 2007.
  • "Non-linear, Non-parametric and Non-fundamental Exchange Rate Forecasting"
    (with N. Gradojevic), Journal of Forecasting, Vol25, Issue 4, 2006, pages 227-245.
  • "Horizontal and Vertical Integration in Security Trading and Settlement Systems"
    (with J. Tapking), Journal of Money, Credit and Banking, October 2006, pages 1765-1797.

Other

Publications

  • "Financial intermediaries in an estimated DSGE model for the UK"
    (with S. Villa, in Interest Rates, Prices and Liquidity, J. Chadha and S. Holly (eds)), Cambridge University Press, 2012.
  • "The Intraday Interbank Liquidity Management Game Design Challenges and Policy Issues"
    (with A. Alentorn, S. Markaos, and S. Millard in Automaton, Human and Economic – Computational Microstructure Design, S. Sunder and S. Markaos (eds.)), The Cambridge University Press (forthcoming).
  • “Financial Structure and Growth”
    (with Leonardo Gambacorta and Kostas Tsatsaronis), BIS Quarterly Review, March 2014.
  • "Bank Stock Returns, Leverage and Business Cycle", with K. Tsatsaronis, BIS Quarterly Review, March 2012.
  • "International Financial Transmission: Emerging and Mature Markets"
    (with G. Felices and C. Grisse), Bank of England Working Paper, No 273, 2009.
  • "Capital Flows to Emerging Markets: Recent Trends and Potential Financial Stability Implications"
    (with G. Hoggarth and C De-Alessi), Bank of England Financial Stability Review, December, 2005
  • "Central Bank Interest Calculating Conventions: Deviating From the Intraday/overnight Status Quo"
    (with G. Speight, M. Willison and M. Bech), in The future of payment systems (edited by A Haldane, S Millard and V Saporta), London: Routledge (2008).
  • "Assessing the Impact of Operational Incidents in Large-value Payment Systems; A simulation approach"
    (with P Bedford and S Millard). In H Leinonen (ed.), Liquidity, risks and speed in payment and settlement systems: A simulation approach Bank of Finland, 2005.
  • "Assessing Operational Risk in CHAPS Sterling: A simulation approach"
    (with s. Millard, and P Bedford), in Bank of England Financial Stability Review, June 2004.
  • "An Empirical Analysis of Liquidity and Order Flow in the Brokered Inter-dealer Market for Government of Canada bonds"
    (with C. Gaa and C. D’Souza), Bank of Canada Working Paper, No. 28, 2003.
  • "The Efficiency of a Double Auction Stock Market with Neural Learning Agents", in S. Chen (ed.), Evolutionary Computation in Economics and Finance, Springer-Verlag (2002). p.100-125.
  • "Alternative trading systems: does one size fit all?"
    (with N. Audet and T. Gravelle) Bank of Canada Working Paper, No. 33, 2002.
  • "Price efficiency and risk sharing in two inter-dealer markets: An Agent-Based Approach", in Proceedings of a workshop on Simulation of Social Agents: Architectures and Institutions, University of Chicago, 2001, page 52-61.
  • "The application of artificial neural networks to exchange rate forecasting: the role of market microstructure variables"
    (with N. Gradojevic), Bank of Canada Working Paper No. 23. 2000.
  • "Trade liberalization in eastern European countries and the prospects of their integration into the world trading system"
    (with J. Ahmad, C. Paraskevopoulos) (ed.), Global Trading Arrangements in Transition, London: Edward Elgar Publishers, 1998. p.101-111.
  • "Exports and economic growth in the ASEAN countries: co-integration and causality tests"
    (with J. Ahmad), Rivista Interzionale Di Scienze Economiche E Commerciali, 1997, XLIV (2): 419-431.