MATÍAS VIEYRA
I am a Senior Economist in the Financial Stability Department at the Bank of Canada. I received my PhD in Economics from University of California, Los Angeles.
My primary research interests are macroeconomics and monetary economics. My research focuses on heterogeneity in macroeconomics.
Contact Information:
Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9, Canada
mvieyraecon [at] gmail.com
WORKING PAPERS
A Q-Theory of Banks, with Juliane Begeneau, Saki Bigio, and Jeremy Majerovitz.
Under Revision for the Review of Economic Studies
Abstract. We introduce a dynamic bank theory featuring delayed loss recognition and a regulatory capital constraint, aiming to match the bank leverage dynamics captured by Tobin’s Q. We start from four facts: (1) book and market equity values diverge, especially during crises; (2) Tobin’s Q predicts future bank profitability; (3) neither book nor market leverage constraints are strictly binding for most banks; and (4) bank leverage and Tobin’s Q are mean reverting but highly persistent. We demonstrate that delayed loss accounting rules interact with bank capital requirements, introducing a tradeoff between loan growth and financial fragility. Our welfare analysis implies that accounting rules and capital regulation should optimally be set jointly. This paper emphasizes the need to reconcile regulatory dependence on book values with the market’s emphasis on fundamental values to enhance understanding of banking dynamics and improve regulatory design.
WORK IN PROGRESS
Mortgage Interest Payments, Consumption, and Monetary Policy
with Mike Irwin
The Expenditure Channel of Monetary Policy
Housing Flows over the Business Cycle
with Christopher Naubert