This position uniquely bridges academic research and policy‑making within a central bank. The successful candidate will have access to confidential, high‑quality granular data, collaborate with a community of over 100 PhD economists, and work from a dedicated desk at the Bank of Canada’s Ottawa headquarters. The role also offers strong visibility for research outputs and opportunities to present at internal seminars and external conferences.
Desired post-doc profile
· Interested in systemic risks, applied econometrics, empirical work, agent-based modelling, financial stability, macroprudential policies, banking, non-bank financial institutions
· Interested in modelling and research opportunities in a central bank who can benefit from access to confidential Canadian granular data in their research
· Willing to develop their experience bringing research to the applied policy world
· Eager to learn about central banks modelling toolkit in systemic risks
What expectations?
· Spend about half of their time on completing their own research
· Spend the other half on guided modelling and applied research with Bank of Canada PhD economists aimed at an academic publication with an applied policy companion paper
· Teach at least one class (36 hours/12 weeks) at uOttawa to be determined given the candidate’s expertise.
Possible applied project at the Bank of Canada, depending on the profile of the candidate
1. Develop the modelling of non-bank financial institutions (e.g. pension funds, insurance sector…) to be integrated into the Bank’s system-wide risk simulation toolkit
Incorporating non‑bank financial institutions into a system‑wide stress‑testing framework, alongside vulnerabilities such as liquidity, firesales, redemption, and counterparty risks across banks, households, pension funds, and insurers, would improve identification of when the Canadian financial system could generate spillovers and inform policies to mitigate those risks. Although pension funds and insurers are typically viewed as financial stabilizers due to their long‑term funding and risk‑pooling roles, they can become sources of amplification depending on their interconnectedness with other financial institutions
2. Expand the scenarios simulation model to improve reverse stress-testing capabilities
Reverse stress testing identifies the shocks, macro‑financial scenarios, and contagion channels that could generate system‑wide stress severe enough to damage the real economy. Unlike traditional stress testing, which evaluates resilience to a given scenario, it focuses on the conditions that would cause failures in the financial system. Machine‑learning methods could help identify the most harmful scenarios for the financial system.
3. Integrate a network contagion modelling into the Bank’s system-wide risk simulation toolkit
Interconnections can propagate risks throughout the financial system. For instance, cross-ownership of mutual funds by banks, lines of credit to non-banks, or households' deposits across institutions are network effects we want to better understand and integrate.
4. Develop a confidence channel for contagion across economic agents and financial markets and integrate it into the Bank’s system-wide risk simulation toolkit
Perceived confidence channels can amplify contagion to the financial system, generating for instance liquidity hoarding mechanisms among various financial market participants.
5. Explore the development of an agent-based model for system-wide stress-testing leveraging AI agentic tools
The next generation of agent-based model may lend itself to the use of agentic AI to simulate contagion behaviors.
What does the financial stability department of the Bank of Canada do?
The financial stability department monitors developments in the Canadian financial system, conducting analysis and research to assess vulnerabilities and risks for the Canadian financial system and to inform macroprudential policies. The department supports the Bank’s crisis management mandate—including provision of liquidity to financial institutions facing stress—and the Bank’s role as resolution authority for domestic designated financial market infrastructures. Research in the department contributes to the deepening of the understanding of financial stability and financial system issues.
The successful candidate would interact with the Modelling and Analysis of Risks team, a departmental hub composed of PhD researchers dedicated to developing and applying modelling innovations that deepen our understanding of financial stability risks, especially systemic risks.
- Cover letter
- Curriculum vitae
- Job market paper
- Letters of reference: 2