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Ben Tomlin is a Director in the Canadian Economic Analysis Department at the Bank of Canada. His primary research interests center on the analysis price adjustment, firm dynamics and productivity in open economies using large micro datasets. Specific topics include exchange rate pass-through and the use of structural models to examine the relationship between movements in exchange rates, plant turnover and productivity. Ben Tomlin received his PhD in economics from Boston University.
This note summarizes the Bank of Canada’s annual reassessment of potential output growth, conducted for the April 2017 Monetary Policy Report. Potential output growth is projected to increase from 1.3 per cent in 2017 to 1.6 per cent by 2020.
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms.
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks need to be more fully specified (Côté 2014).
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.
Estimating potential output and the output gap - the difference between actual output and its potential - is important for the proper conduct of monetary policy. However, the measurement and interpretation of potential output, and hence the output gap, is fraught with uncertainty, since it is unobservable.
“Importers and Exporters in Exchange Rate Pass-Through and Currency Invoicing”
(with Michael Devereux and Wei Dong), Journal of International Economics, 2017, Vol. 105, pp. 187-204.
"Pricing-to-Market, Currency Invoicing and Exchange Rate Pass-Through to Producer Prices"
(with S. Cao and W. Dong), Journal of International Money and Finance, 2015, Vol. 58, pp. 128-149.
"Exchange Rate Movements and the Distribution of Productivity"
(with L. Fung), Review of International Economics, 2015, Vol. 23, pp. 782-809.
"Exchange Rate Fluctuations, Plant Turnover and Productivity," International Journal of Industrial Organization, 2014, Vol. 35, pp. 12-28.
Other Publications
"Exchange Rate Pass-Through, Currency of Invoicing and Market Share"
(with Michael Devereux and Wei Dong), NBER Working Paper No. 21413, July 2015.