Restart Playbook Must Balance Risk with Economic Cost: Crisis Working Group on Business Continuity and Trade
April 24, 2020 – Any framework for a gradual reopening of the economy should be transparent, pan-Canadian, and balance the risks of further transmission with the economic costs of leaving key sectors shut down, says the C.D. Howe Institute Crisis Working Group on Business Continuity and Trade.
In its meeting on April 21, the group of economists and industry experts, 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, discussed what the playbook for a gradual return to work should look like.
Recommended principles for this playbook are:
Transparent pre-conditions for each stage…Expanded Bank of Canada Balance Sheet Requires Balancing Act: Crisis Working Group on Monetary and Financial Measures
April 23, 2020 – Between early March and mid-April, the Bank of Canada’s balance sheet more than doubled, dwarfing anything seen in 2008. Moreover unlike 2008, this increase has serious implications for future inflation, because the Bank’s increased liabilities are not the result of government deposits, but rather increased “settlement balances” or deposits by financial institutions, which increases the monetary base.
Once the pandemic and economic crisis passes there is no easy solution to the potential inflation problem arising from more money chasing fewer goods and services. Trying to unwind the Bank’s balance sheet by selling longer-term assets is fraught with political risk. Alternatively, while a floor system could help…
Risk Management Approach Integral to Back-to-Work Strategy: Crisis Working Group on Household Income and Credit Support
April 20, 2020 – Governments must employ a risk management approach to facilitate a gradual reopening of the economy, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support.
At their April 14 meeting, members agreed that ending the lockdowns and restarting the economy will require a risk management approach on the part of governments, as they balance imperatives related to public health, healthcare utilization, the economy and public finance. Members also recognized that industry can play an enormous role in offering a way forward in the return-to-work strategy.
Best practices surrounding the reopening of the economy should include:
Cooperation across governments in…Canada Needs Playbook for Restarting Economy: C.D. Howe Institute Crisis Working Group on Business Continuity and Trade
April 17, 2020 – Canada needs firm principles and timelines for a graduated return to work, according to a new report from a C.D. Howe Institute Crisis Working Group.
At its latest meeting on Tuesday, April 14, the Working Group on Business Continuity and Trade discussed the need for a “playbook” to restart Canada’s economy, the implementation of supports for businesses to “bridge” the present shutdown, and the importance of continued investment in robust telecommunications infrastructure to meet the current surge in demand.
The group of economists and industry experts is co-chaired by Dwight Duncan, Senior Strategic Advisor at McMillan LLP and former Ontario Minister of Finance, and Jeanette Patell, Vice-President of…
Ottawa Should Release EI and CERB Data Quickly, Regularly: Crisis Working Group on Household Income and Credit Support
April 13, 2020 – The federal government should release data on Employment Insurance (EI) claims and the Canada Emergency Response Benefit (CERB) on a timely and regular basis, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support.
The group, comprised of Canadian business leaders and economists and chaired by Michael Horgan, Senior Advisor at Bennett Jones LLP and former Deputy Minister of Finance, Government of Canada, held their third meeting on April 7, 2020 to identify and prioritize key policy challenges during the COVID-19 crisis, and consider policy options and recommendations.
In addition to calls for timely and regular data releases, the group recommended a focus on…
