A global pandemic that has crushed the economy. A stock market improbably rising in an economic downturn. Is it the job of the Bank of Canada to address this contradiction, and the inequality that arises?
Not directly, but the link between monetary policy and inequality is very real and affects the ability of the central bank to reliably hit its 2-per-cent inflation target.
In March and April, when we went into complete lockdown because of the COVID-19 pandemic, GDP fell more than 18 per cent, the largest two-month economic decline on record. A myriad fiscal policies were put in place, including household income supports, such as the Canada Emergency Response Benefit, and business supports, such as the Canadian Emergency…
Alberta can help jump-start its economy with three simple words: Come on in - Globe and Mail Op-Ed
Governments across Canada are still coming to grips with the COVID-19 pandemic, but looking toward recovery all the same. For Alberta, this is a uniquely challenging endeavour. Oil prices remain low, and may stay there for some time. But there are options, and one stands out: making it easier for skilled individuals to move in.
Ensuring Alberta is as open as possible to the best talent from across Canada and abroad to exercise their profession, ply their trade or conduct their business can help boost the province’s economy. Not all moves make sense, but there are artificial regulatory barriers currently deterring some potential migrants from helping build Alberta’s economy. Those should be lifted.
It may seem strange, at a…
D’habitude, les révisions quinquennales de la cible de la Banque du Canada suscitent un long bâillement, sauf pour les mordus de la politique monétaire qui ressentent le petit frisson d’un changement possible, mais toujours déçu, tel un coït interrompu.
Les crises qui se succèdent et l’essoufflement de la politique monétaire et de son outil – le taux d’intérêt – suggèrent des ajustements plus significatifs cette fois-ci, sans aller jusqu’à brûler les manuels de macroéconomie.
Peintes en nuances subtiles, les décisions sur les objectifs et les moyens utilisés par la banque centrale exercent néanmoins un effet puissant sur le bien-être de tous, sur le pouvoir d’achat, sur l’emploi et sur la création de richesse. En période…
