Aiming Higher: How to Build Greater Resiliency for Large Credit Unions in Canada
Credit unions represent an important part of the Canadian banking sector and, therefore, the Canadian economy. Outside of Quebec, at the end of 2021 credit unions held almost $280 billion in assets, representing about 7 percent of banking sector assets. While improving corporate governance has been part of the reform agenda for federal policymakers and […] Ed Devlin on BNN – The hidden sting in removing stimulus: A tide of new debt
Ed Devlin, Senior Fellow at the C.D. Howe Institute and founder of Devlin Capital, joined BNN Bloomberg and discussed the Bank of Canada being in uncharted territory as it implements quantitative tightening – the shrinking of its balance sheet – while also tightening interest rates. He advised the Bank to be flexible if a flood of new government bonds ends up swamping Canada’s illiquid market.
Ambler, Kronick – Reintegrate Money into Monetary Policy Analysis
From: Steve Ambler and Jeremy M. Kronick To: Bank of Canada Governing Council Date: July 5, 2022 Re: Reintegrate Money into Monetary Policy Analysis Headline inflation, which has reached 7.7 percent, has become decidedly unsettled. Until the 1980s, most economists believed there was a significant relationship between money and inflation in both the short and long runs. However, […] Jeremy Kronick on BNN – BoC’s policy rate must go much farther to get inflation back down
Jeremy Kronick, Associate Director of Research at the C.D. Howe Institute, joined BNN Bloomberg to explain how stimulus spending during the pandemic has created an overhang in the economy and prices have to play catch-up with the money now sloshing around in the system. Kronick says the slowdown in the rates of money growth and in the housing market are positive signs for taming inflation.
Jackson, Kumar, Asghar – University Endowments Should Walk the Talk
To: Canada’s University Foundation Boards From: Catherine Jackson, Abhishek Kumar and Ramisha Asghar Date: June 8, 2022 Re: University Endowments Should Walk the Talk Canadian universities are world renowned for their leadership in research and education. Many undertake research efforts and teach students about the risks and opportunities associated with climate change. Most have also embraced a transition to […] Cash in the bank: Cutting through the noise on digital currencies – Globe and Mail Op-Ed
In the debate over whether the Bank of Canada should issue a central bank digital currency, it is tempting to take a black-and-white perspective. But, the truth is subtler. There exists a spectrum of CBDC design possibilities and a proper evaluation of the different options is necessary.
As it turns out, a token-based CBDC – one that mimics cash quite closely – would respect privacy, create an environment for new forms of private money to grow and wouldn’t disrupt the functioning and stability of our financial system.
To understand why this option is optimal, it is first important to distinguish between public and private money. Public money consists of the physical notes and coins in circulation – the cash in your wallet…
William B.P. Robson on Power & Politics – Poilievre Targets BoC Chief
Conservative Leadership candidate Pierre Poilievre is facing scrutiny over his claims that he would fire the Bank of Canada governor should he become Prime Minister. William B.P. Robson joins Power & Politics to discuss.
William White – The Weaponization of Finance and the Future of the International Monetary System
From: William White To: International Currency Watchers Date: May 10, 2021 Re: The Weaponization of Finance and the Future of the International Monetary System The recent use of financial sanctions by the US, against the central bank of Russia, initially raised fears that other countries might try to protect themselves by reducing sharply their reserve holdings of US dollars. […] Put to the Test: Ranking Canada’s Universities on Their Climate Change and Endowment Activities
Canadian universities are world renowned for their leadership in research and education. Many Canadian universities undertake research efforts and teach students about the risks and opportunities associated with climate change. Most have also embraced a transition to lower the carbon footprint across their operations. However, universities could do more to align their investment philosophies with […] Don Drummond – The 2022 Federal Budget Measures Misaligned with Needs
From: Don Drummond To: Finance Minister Chrystia Freeland Date: April 20, 2022 Re: The 2022 Federal Budget Measures Misaligned with Needs A common reaction to the 2022 federal budget is “not as bad as expected.” What kind of evaluation is this? Faint praise simply because fears of massive new spending did not materialize? But that fear was stoked by […] The Bank of Canada’s rate hike: You can’t fight inflation on the QT – Financial Post Op-Ed
With inflation on the rise, the Bank of Canada kicked its tightening cycle into high gear Wednesday by announcing a 50-basis-point increase in its target for the overnight rate — the first non-25-basis-point hike in over 20 years. It also modified its stance concerning its over-sized holdings of Government of Canada bonds, which swelled its balance sheet during so-called Quantitative Easing (QE). Those days are over: it will now initiate Quantitative Tightening, or QT, by not replacing bonds on its balance sheet as they mature, thus reducing its bond holdings over time.
Some might be disappointed the bank didn’t go further on QT by announcing it would actually start selling its holdings of government bonds. Not to worry.…
Zelmer, Kronick – Cryptocurrencies No Defence Against Inflation
From: Mark Zelmer and Jeremy M. Kronick To: Canadian Crypto Watchers Date: April 14, 2022 Re: Cryptocurrencies No Defence Against Inflation People have many buoyant expectations of cryptocurrencies as they look for ways to conduct their financial affairs outside the traditional financial system. They hope that, as crypto and its supporting blockchain technology mature, there will eventually be no […]