Edward Waitzer – Change Needed: Crooks Shouldn’t Get Out of Fines Through Bankruptcy
From: Edward Waitzer To: Bankruptcy law watchers Date: August 8, 2024 Re: Change Needed: Crooks Shouldn’t Get Out of Fines Through Bankruptcy Insolvency laws in Canada (as in the United States, Britain and Australia) have long enshrined the principle that bankruptcy should not assist dishonest debtors. But the Supreme Court of Canada recently determined that fraudsters are able to […] Ripple Effects: The Impact of an Empty-Homes Tax on the Housing Market
The Canadian housing market is experiencing an unprecedented crisis. One solution being explored is the adoption of demand-side measures like Vancouver’s 2017 empty-homes tax. This E-Brief evaluates the tax’s impact on housing affordability and availability, helping policymakers balance efficient property use with ensuring a steady supply of new homes. We use the difference-in-difference (DID) method […] The Good, the Bad and the Unnecessary: A Scorecard for Financial Regulations in Canada
Canada’s regulatory burden has increased significantly over the past decade, resulting in higher compliance costs and decreased competitiveness. This paper evaluates whether Canadian financial regulators employ a sound approach. There is a need for a balanced approach that ensures regulations address financial stability and consumer protection while fostering innovation and market efficiency. The analysis includes […] Graph of the Week: The 5-Year Fixed Interest Rate
Introducing Graph of the Week, a new series from the C.D. Howe Institute’s Graphic Intelligence that presents valuable and easily digestible data. Each Monday we will unveil one new captivating chart or graph with interesting insights, explaining it in two-to-three sentences. Dive into the data with us. The 5-year fixed interest rate is the most […] C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Lower Overnight Rate to 4.50 Percent, Cut to 3.25 Percent by July 2025
July 18, 2024 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to lower its target for the overnight rate, its benchmark policy interest rate, to 4.50 percent at its next announcement on July 24th. The MPC further calls for the Bank to lower the target to 4.25 at the following announcement in September, on the way to a target of 3.25 percent by July of 2025.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. MPC co-chair, Jeremy Kronick, the Institute’s Associate Vice President and Director of the Centre on Financial and Monetary Policy, chaired this meeting. MPC members make…
Mark Zelmer – Let’s Not Rush New Bank Rules on Capital and Lending
From: Mark Zelmer To: Office of the Superintendent of Financial Institutions Date: June 13, 2024 Re: Let’s Not Rush New Bank Rules on Capital and Lending Canada’s financial regulator is in a ticklish situation. On March 6, Federal Reserve Chairman Jerome Powell signalled that US regulators are reconsidering their plans to hike capital requirements for large banks in accordance with what […] Bob Baldwin – Don’t Handcuff Big Pension Plans to Canada
From: Bob Baldwin To: Finance Minister Chrystia Freeland Date: May 28, 2024 Re: Don’t Handcuff Big Pension Plans to Canada Last month’s budget unveiled a working group led by former Bank of Canada governor Stephen Poloz to collaborate with pension fund leaders to encourage funds to invest more of their assets in Canada. This initiative is not consistent with […] Domestic Stability Buffer Council
The Domestic Stability Buffer is a capital buffer that the big six Canadian Domestic Systemically Important Banks (D-SIBs) must set aside to cover potential losses during periods of financial stress. The Centre’s Domestic Stability Buffer Council, chaired by Jeremy Kronick, provides OSFI, industry participants and key economic policy voices with an independent assessment of the […] Financial Services Research Initiative
The financial services sector would be a vital component of the Canadian economy if measured according to its output and employment alone. It is more than that, however, because the efficiency and effectiveness of the financial sector is critical to economy-wide performance. The financial sector constitutes the infrastructure of commerce; financial intermediation is also the […] As the Bank of Canada resists rate cuts, is it falling behind the curve again? – Globe and Mail
The latest data (from February) indicate that the battle against inflation is almost over. Despite the encouraging inflation data, the Bank of Canada again held its policy rate at 5 percent on Wednesday. What gives? The bank, like many other central banks, was slow off the mark to raise rates as inflation took off. We worry it runs the risk of falling behind the curve again.
First, let’s examine why the bank might be hesitating to cut – the housing market and fiscal policy. Then, let’s examine why, in our view, that’s not enough.
Year-over-year headline inflation dropped inside the bank’s 1-3 percent range in January, and continued to fall in February, sitting at 2.8 percent. Core inflation, which strips out more volatile…
Jeremy Kronick on BNN – If the BoC waits too long to cut rates, it may fall behind the curve
Jeremy Kronick, Associate Vice President and director of the Centre on Financial and Monetary Policy, joins BNN Bloomberg to discuss the path for rate cuts in Canada, inflation and the fiscal policy.
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 5.00 Percent, Cut to 3.50 Percent by April 2025
April 4, 2024 – The C.D. Howe Institute’s Monetary Policy Council (MPC) calls for the Bank of Canada to maintain its target for the overnight rate, its benchmark policy interest rate, at 5.00 percent at its next announcement on April 10th. The MPC further calls for the Bank to lower the target to 4.75 at the following announcement in June, on the way to a target of 3.50 percent by April of 2025.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2…