University of British Columbia

Canadian Macro Study Group

Annual Conference

November 9-10, 2001

Landmark Hotel, Vancouver, British Columbia

cmsg2001@interchange.ubc.ca

PROGRAMME

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