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The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

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31 Jul 2018
Jul
31
Canada, like other economies, seeks to attract foreign direct investment to help grow its standard of living. In recent years, however, Canada has struggled to attract such investments. Foreign investments that are “direct,” in contrast to portfolio investments in which investors acquire smaller portions of equity or debt in a company, entail the investor acquiring some control over how their new Canadian business is run. In turn, this typically means that a foreign direct investor is making a long-term commitment to Canada. FDI by and large supports Canadian productivity and relatively high-wage jobs in Canada, because it helps integrate Canada’s economy into the global economy – into value chains where each part contributes what it...
27 Jul 2018
Jul
27
Many Canadian employers are facing a tightening labour market due to labour shortages. Imbalances between labour supply and demand exist across population groups and regions. Addressing these disparities through improvements in labour mobility and employment of underrepresented groups would have a positive impact on the Canadian economy. According to Statistics Canada, the number of job vacancies (unadjusted for seasonality) rose by 19.3 per cent to more than 462,000 in the first quarter of 2018 compared with a year earlier. This led to an increase in the job-vacancy rate − the share of unfilled jobs out of all available jobs − from 2.6 per cent to 2.9 per cent, pointing to a need for more workers. On the other hand, Canada’s...
12 Jul 2018
Jul
12
Markets were not surprised by today’s Bank of Canada announcement to hike its overnight target rate by 25 basis points to 1.5 per cent. They had factored in a very high probability of an increase. And, consistent with a stated desire to improve its communications with both market participants and “the soccer dad,” it was a speech and a press conference that set the stage. Governor Stephen Poloz’s speech on June 27 was an important factor in moving market expectations. By the end of the news conference that followed his speech, markets were confident of a hike. The theme of the speech was transparency and communications. By significantly shifting market expectations in the direction of a rate hike, the speech and news conference were...

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© 2018 C.D. Howe Institute. All Rights Reserved.