In a new report entitled “Monetary Policy, Income Inequality, and Inflation—What’s the Link?” authors Jeremy Kronick and Francisco Villarreal investigate the link between monetary policy, income inequality and inflation in Canada, and explore why and how inflation plays a role. Income inequality largely increased from the time the Bank of Canada began targeting inflation, through the … Read more
The Bank of Canada’s current mandate should not be expanded to include financial stability, says a new report from the C.D. Howe Institute. In “The Bank of Canada and Financial Stability: A New Mandate?,” authors Michael D. Bordo and Pierre L. Siklos make the case that the Bank of Canada should not confuse the public by … Read more
The C.D. Howe Institute released a new report, Keeping Score: Investor-State Dispute Awards between the U.S. and Canada, U.S. investor-state disputes against Canada still loom under NAFTA, with five unresolved claims outstanding. “With the approval of the new North American trade deal, now dragging through Congress, the window will begin to close on the ability of US investors … Read more
The C.D. Howe Institute’s Monetary Policy Council recommends the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 1.75 per cent at its next announcement on October 30, 2019. The Council’s median recommendation for a steady overnight rate in the near term, but a lower one by the spring of 2020, largely … Read more
The C.D. Howe Institute published a report, “Thin Capitalization: Weak Business Investment Undermines Canadian Workers,” in which author William B.P. Robson warns that lagging capital investment in Canada has crippled Canadian workers’ ability to increase production and earn higher wages. “Canada’s anemic performance contrasts strikingly with the robust U.S. story, where workers will likely enjoy new capital … Read more
The C.D. Howe Institute released a new report, Quantifying CUSMA: The Economic Consequences of the New North American Trade Regime, which finds that while the Canada-United States-Mexico Agreement will help the Trump administration fulfill some of its economic objectives, it stands to shrink GDP and lower economic welfare throughout the North American region. Report authors Dan Ciuriak, Ali … Read more
The C.D. Howe Institute report released a new report, “Big Spenders: Canada’s Senior Governments Have a Bad Budget Habit,” in which authors William B.P. Robson and Farah Omran compare the budgets of Canada’s senior governments with the revenues and expenses published in their audited year-end financial statements. “Over the 18 fiscal years since 2000/01,” said Robson “these … Read more
The C.D. Howe Institute released a new report entitled “Inflation after the Crisis: What’s the Story?” where authors Jeremy Kronick and Farah Omran explore a link between the breadth of economic growth and inflation performance over the period following the financial crisis. The full report can be found online. Call 416-865-9935.
The C.D. Howe Institute published a new report, “Bumper to Bumper: Will the CUSMA Rules of Origin Make America’s Auto Industry Great Again?” which delves into the arcane rules of origin that will determine whether a good is eligible for duty-free treatment and finds they are still unclear in many cases, more stringent than those in NAFTA, … Read more
The C. D. Howe Institute issued a new report, Over the Top: Why an Annual Wealth Tax for Canada is Unnecessary, in which authors Robin Boadway and Pierre Pestieau note the rising calls for a national wealth tax (the federal NDP recently made a wealth tax part of its platform for the upcoming federal election) and assess whether … Read more
