Ottawa Needs a Clear Fiscal Anchor: Fiscal and Tax Working Group
September 14, 2020 – Ottawa must adopt a clear fiscal anchor to guide and control expenditure choices, says the C.D. Howe Institute’s Fiscal and Tax Working Group. The group of experts in both the private sector and academia is co-chaired by John Manley, former federal minister of finance; and Janice MacKinnon, former minister of finance of Saskatchewan.
At their recent meeting, working group members discussed the importance of fiscal sustainability in ensuring government’s ability to provide public services, and the appropriate fiscal anchor to impose discipline over budgetary decisions.
If left unanchored, public debt can eventually be monetized, as the central bank buys up government bonds, leading to higher…
Bank of Canada Should Keep Overnight Rate at 0.25 Percent and Maintain Federal Bond-Buying Program: C.D. Howe Institute Monetary Policy Council
September 3, 2020 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent at least until September of 2021. Most MPC members also recommended that the Bank of Canada continue its quantitative easing program through the period until its next overnight rate announcement on October 28th.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s CEO, chairs the Council. The Council’s principal recommendations are about the overnight rate target. Members make recommendations for the Bank of…
Support Digitization of Small Businesses and Boost Interprovincial Trade: Crisis Working Group on Business Continuity and Trade
August 20, 2020 – Canada should provide additional supports for businesses facing the costs of digitizing operations due to the pandemic, says a new report from the C.D. Howe Institute.
The report from the Crisis Working Group on Business Continuity and Trade also emphasized a need to reduce barriers to interprovincial trade and mobility, accelerate private sector capital spending, and clarify confusion around Canada’s foreign investment regime.
The group of industry experts and economists, co-chaired by Dwight Duncan, Senior Strategic Advisor at McMillan LLP and former Ontario Minister of Finance; and Jeanette Patell, Vice-President of Government Affairs and Policy for GE Canada, held its final meetings on June 16 and…
Bank of Canada Should Keep Overnight Rate at 0.25 Percent over Coming Year: C.D. Howe Institute Monetary Policy Council
July 9, 2020 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent until at least July of 2021.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s CEO, chairs the Council. Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the subsequent announcement, and the announcements six months and one year ahead. The Council’s formal recommendation for each announcement is the median vote of members attending the meeting.
The eight…
Ottawa Should Use CERB Extension Time Wisely: Crisis Working Group on Household Income and Credit Support
June 23, 2020 – Ottawa should use the Canada Emergency Response Benefit’s eight-week extension to update its Employment Insurance administrative architecture and roll out a training benefit program, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support.
At their recent meeting, working group members discussed the proposed amendments to the Canada Emergency Response Benefit (CERB) Act. The group also identified the need for training support benefits for CERB recipients, management of uncertainties to improve decision-making by households, and increased coordination with provincial governments to ease the transition back to work.
The group recommends:
Removing the…