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.
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.
Firms increasingly rely on digital technologies such as e-commerce, cloud computing, big data, digital tracking and digital platforms that are reshaping business operations, business models and market structures. In this context, the Bank of Canada consulted with firms in wholesale, retail and logistics, as well as with related industry associations to yield insights on the adoption of digital technologies.
Information technology (IT) is an increasingly integral part of everyday business and personal life reflecting the ongoing and accelerating digital transformation of the economy. In this paper, we present information gathered from a survey with export-oriented firms in the Canadian IT service industry and consultations with industry associations aimed at shedding light on this small but highly dynamic sector.
When prices are sticky, movements in the nominal exchange rate have a direct impact on international relative prices. A relative price misalignment would trigger an adjustment in consumption and employment, and may help to predict future movements in the exchange rate.
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.
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.
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.
This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market—that is, exporting firms and importing firms.
This paper studies the sensitivity of Canadian producer prices to the Canada-U.S. exchange rate. Using a unique product-level price data set, we estimate and analyze the impact of movements in the exchange rate on both domestic and export producer prices.
In theory, nominal exchange rate movements can lead to “expenditure switching” when they generate changes in the relative prices of goods across countries. This paper explores whether the expenditure-switching role of exchange rates has changed in the current episode of significant global imbalances.
This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through.
The author investigates the quantitative importance of the expenditure-switching effect by developing and estimating a structural sticky-price model nesting both producer currency pricing (PCP) and local currency pricing (LCP) settings.
Building on an earlier Review article, the authors critically reassess the premise that exchange rate pass-through (ERPT) has declined in light of recent studies of the issue in the context of a dynamic stochastic general-equilibrium framework.
“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.
We use cookies to help us keep improving this website.
