Canadians are beset by economic problems. Inflation is hammering their purchasing power. Forecasters are predicting weak, if any, growth in living standards. And now headlines are warning that tighter monetary policy may cause a recession. The list of challenges seems dauntingly long. On the other hand, they have a single underlying cause: slow growth of Canada’s productive capacity. Governments, especially the federal government, can and should help.
Inflation is high because fiscal and monetary stimulus has pushed demand above what our economy can supply. If we could produce more, the mismatch between too much money and too little output would be less severe, and our purchasing…
Alors qu’on placote autour du BBQ, une bière à la main, s’amène à l’horizon la tempête parfaite pour troubler notre insouciance : une crise alimentaire mondiale.
Les plus fortunés se scandaliseront du prix du bifteck d’aloyau ou du homard, mais pas assez pour s’en priver. Les autres devront se serrer la ceinture et un nombre grandissant iront le ventre vide.
Cette tempête parfaite est la fille des ouragans que nous connaissons bien : la pandémie, la guerre en Ukraine et le réchauffement climatique.
Il y a assez de nourriture pour tous, mais tous ne peuvent se la payer, surtout quand les prix grimpent en flèche.
Depuis le début de la COVID-19, les prix des céréales sont en hausse de 75 % et…
The Bank of Canada continued its tightening cycle on Wednesday by announcing a 50-basis-point increase that brings its target for the overnight interest rate to 1.50 per cent. That met market expectations and means the total increase since February has been 1.25 percentage points. Expect more hikes to come.
By the end of last year, the Bank of Canada had recognized that inflation had overshot projections and was going to be more persistent than previously forecast. The bank passed on an opportunity to raise rates in January, but has done so three times since, including two highly unusual hikes of 50 basis points — something not seen for over 20 years.
Does this mean monetary policy has tightened since the end of last year…
