University of British Columbia

Canadian Macro Study Group

Annual Conference

November 9-10, 2001

Landmark Hotel, Vancouver, British Columbia



Note:  Speakers will have about 25 minutes, discussants 15 minutes, followed by questions from the floor and response by the speaker of about 10 minutes. 



Friday November 9


Session 1 The Real Exchange Rate 8:30 a.m. – 10:15 a.m.


            Chair:  Michael Devereux


Caroline Betts* (USC) and Timothy Kehoe (Minnesota), “Tradability of Goods and Real Exchange Rate Fluctuations

Discussant:  Beverly Lapham (Queen’s)


Mario Crucini (Vanderbilt), Chris Telmer* (Carnegie Mellon) and Marios Zachariadis (LSU) “Understanding European Real Exchange Rates”

Discussant: John Helliwell (UBC)


Coffee Break 10:15 a.m. – 10:30 a.m.


Session 2 Search and Matching 10:30 a.m. – 12:00 noon


            Chair: Paul Beaudry


Randall Wright (UPenn) “Unstable Relationships

            Discussant: David Andolfatto (SFU)


            Allen Head* (Queen’s) and Alok Kumar (Queen’s) “Continuous Price Dispersion in a Random Matching Monetary   

Model” Discussant: Merwan Engineer (Victoria)


Lunch Break 12:00 p.m. – 1:45 p.m.


Session 3 Growth and Cycles 1:45 p.m. –  3:30 p.m.


            Chair: Francisco Gonzalez


Huw Lloyd Ellis* (Queens) and Patrick Francois (Tilburg) “Animal Spirits Meet Creative Destruction”

Discussant: Shouyong Shi (Indiana)


Diego Restuccia* (Toronto) and Xiadong Zhu (Toronto) “Endogenous Population Growth and International Income Differences”      Discussant: Mukesh Eswaran (UBC)

Coffee Break 3:30 p.m. – 3:45 p.m.


Session 4 Dynamic models of the Labor Market 3:45 p.m. – 5:30 p.m.


            Chair: James Nason


Miquel Molico* (UWO) and Gwen Eudey (BGFRB) “Production Synergies, Technology Adoption, Unemployment, and Wages”Discussant: Brian Krauth (SFU)


Raquel Fernandez (NYU), John Knowles (UPenn), and Nezih Guner* (Queen’s) “Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality”

Discussant: David Green (UBC)


Saturday November 10


Session 5 Optimal Monetary and Fiscal Policy 8:30 a.m. – 10:15 a.m.


            Chair: Michael Devereux


Steven Ambler (UQAM) “Optimal Time-Consistent Taxation with Overlapping Generations”

Discussant: Mark Crosby (Melbourne)


Bruce Smith* (UT Austin) and Beatrix Paal* (Stanford), “The Sub-optimality of the Friedman Rule and the Optimal Quantity of Money”

            Discussant: Wai Ming Ho (York U.)


Coffee Break 10:15 a.m.-10:30 a.m.


Session 6 Monetary Policy and Inflation 10:30 a.m. – 12:00 noon


            Chair: Paul Beaudry


Laurence J. Christiano*, Martin Eichenbaum, and Charles Evans “Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy”

            Discussant: Miquel Faig (Toronto)


Shouyong Shi (Indiana) “Hosios meets Friedman: Efficiency in a Search Model of Money.”

Discussant: Randall Wright (Penn)


Lunch Break 12:00 p.m. – 1:45 p.m.


A special lunch-time lecture will be given by Timothy J. Kehoe (University of Minnesota) on

"A Decade Lost and Found:  Mexico and Chile in the 1980s"






Session 7 New issues in Business Cycle Modeling 1:45 p.m. – 3:30 p.m.


            Chair: Francisco Gonzalez


Marc Andre Letendre* (McMaster) and Alok Johri (McMaster) “Labour Market Dynamics in Real Business Cycle Models”

Discussant: Martin Boileau (UC Boulder)


David Love* and Jean Francois Lamarche (Brock) Anticipated Technological Change and Real Business Cycles Discussant: James Nason (UBC)


Coffee Break 3:30 p.m. – 3:45 p.m.


Session 8 The Cost of Business Cycles 3:45 p.m. – 5:30 p.m.


            Chair: James Nason


Gadi Barlevy (Northwestern) “Evaluating the Costs of Business Cycles in Models of Endogenous Growth”

            Discussant: Kenneth Kasa (SFU)


Mark Bils (Rochester) and Yongsung Chang* (UPenn) “Welfare Costs of Sticky Wages When Effort Can Respond

Discussant: Paul Beaudry (UBC)


* presenter