Christian Friedrich - Latest

• Monetary Policy and Financial Stability: Cross-Country Evidence

  Staff Working Paper 2015-41 Christian Friedrich, Kristina Hess, Rose Cunningham

  Central banks may face challenges in achieving their price stability goals when financial stability risks are present. There is, however, considerable heterogeneity among central banks with respect to how they manage these potential trade-offs.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, International topics, Monetary policy framework JEL Code(s): E, E4, E5, G, G0, G01
• May 14, 2015

  Inflation Dynamics in the Post-Crisis Period

  Bank of Canada Review - Spring 2015 Christian Friedrich, Marc-André Gosselin

  Inflation rates in advanced economies experienced two consecutive puzzles during the period following the global financial crisis—unexpectedly high inflation from the end of 2009 to 2011 and unexpectedly low inflation from 2012 to the middle of 2014. We investigate these developments in two ways. First, we show that accounting for inflation expectations by households explains a significant share of the inflation puzzles at the international level. Second, we find that, for Canada, elevated competition in the retail sector is also important for understanding inflation dynamics in the post-crisis period.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation and prices, International topics, Regional economic developments JEL Code(s): E, E3, E31, E5, F, F4, F41

• Does Financial Integration Increase Welfare? Evidence from International Household-Level Data

  Staff Working Paper 2015-4 Christian Friedrich

  Despite a vast empirical literature that assesses the impact of financial integration on the economy, evidence of substantial welfare gains from consumption risk sharing remains elusive. While maintaining the usual cross-country perspective of the literature, this paper explicitly accounts for household heterogeneity and thus relaxes three restrictive assumptions that have featured prominently in the past.

  Content Type(s): Staff research, Staff working papers Topic(s): International financial markets, International topics, Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E21, F, F3, I, I3, I31

• Global Inflation Dynamics in the Post-Crisis Period: What Explains the Twin Puzzle?

  Staff Working Paper 2014-36 Christian Friedrich

  Inflation dynamics in advanced countries have produced two consecutive puzzles during the years after the global financial crisis. The first puzzle emerged when inflation rates over the period 2009-11 were consistently higher than expected, although economic slack in advanced countries reached its highest level in recent history.

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Inflation and prices, International topics JEL Code(s): E, E3, E31, E5, F, F4, F41

• Capital Flows and Macroprudential Policies - A Multilateral Assessment of Effectiveness and Externalities

  Staff Working Paper 2014-31 John Beirne, Christian Friedrich

  This paper assesses the effectiveness and associated externalities that arise when macroprudential policies (MPPs) are used to manage international capital flows. Using a sample of up to 139 countries, we examine the impact of eight different MPP measures on cross-border bank flows over the period 1999-2009.

  Content Type(s): Staff research, Staff working papers Topic(s): Balance of payments and components, Financial markets, International topics JEL Code(s): F, F3, F5, G, G0, G01, G1, G11