The “Demand Stabilization Mechanism”: Using Temporary GST Cuts as Automatic Fiscal Policy
Automatic GST Cuts Should Be In Ottawa’s Tool Box To Fight Downturns The federal government should consider automatic cuts to the goods and services tax (GST) in downturns as a complementary fiscal policy measure states the report. Authors Robin Boadway and Thorsten Koeppl propose an automatic mechanism that would use temporary cuts in the GST […] A Passport to Success: How Credit Unions Can Adapt to the Urgent Challenges They Face
Credit Unions Must Go Big on Digital, Scale up to Thrive Credit unions face urgent challenges in the digital revolution, including the need for large new investments in technology and room to expand, according to a new report from the C.D. Howe Institute. With the digital revolution underway, most credit unions outside of Quebec are […] Ambler, Kronick – The Bank of Canada’s Welcome Inflation Blink
From: Steve Ambler and Jeremy M. Kronick To: Inflation watchers Date: November 2, 2021 Re: The Bank of Canada’s Welcome Inflation Blink The Bank of Canada’s decision last week to leave its target for the overnight interest rate at 25 basis points and end its quantitative easing (QE) program was the right call given what now seems to be […] Il est minuit moins une, que fait votre argent? – La Presse Opinion
Que fait votre argent pour sauver la planète alors que s’ouvre la COP26, la conférence de la dernière chance pour limiter le réchauffement climatique?
Une bonne partie de votre épargne, celle qui assure(ra) votre chèque du Régime de rentes du Québec, est gérée par la Caisse de dépôt et placement, qui a récemment décidé de vendre ses dernières actions dans le pétrole, mais de conserver celles dans le gaz naturel et les pipelines.
La Caisse est l’une des 295 institutions financières de 40 pays qui, collectivement, gèrent des actifs supérieurs à 90 000 milliards de dollars américains, et qui se sont engagées à atteindre la carboneutralité de leur portefeuille d’ici 2050, à se fixer une cible intérimaire pour 2030, à…
Inflation and the Bank of Canada: the Bank blinks – Financial Post Op-Ed
On Wednesday, the Bank of Canada left its target for the overnight interest rate at 25 basis points and ended its quantitative easing (QE) program, which, through purchases of government bonds, had more than quadrupled its balance sheet. This was the right call given what now seems to be persistent underlying inflation.
From now on, the Bank will only purchase government bonds to replace ones that mature. Its balance sheet will stay high compared to its pre-pandemic level but, in theory, won’t grow further. Tightening monetary policy to deal with inflation above target can now come in only one of two forms: shrinking the balance sheet by selling or not replacing maturing government bonds or, more likely, hiking the overnight…
Eloise Duncan – Financial Resilience Index: a New Tool to Refine Income Support
From: Eloise Duncan To: Finance Minister Chrystia Freeland Date: October 28, 2021 Re: Financial Resilience Index: a New Tool to Refine Income Support Governments were generous and broad in their financial support during the COVID-19 pandemic, but as the economy returns to a normal state – and fiscal positions remain under strain – it is […] Daniel Schwanen – Ill-Thought Regulation Risks Canadian Access to the Full Benefits of Digital Technology
From: Daniel Schwanen To: The Incoming Canadian Parliament Date: October 7, 2021 Re: Ill-Thought Regulation Risks Canadian Access to the Full Benefits of Digital Technology Canada’s newly elected Parliament will be considering a bevy of proposals for reforms aimed at regulating how Canadians interact with social media platforms and other providers of digital services and content. […] Martin Eichenbaum – Meet r Minus g: A New Way to Worry about Deficit Spending
From: Martin Eichenbaum To: Canadian deficit watchers Date: October 1, 2021 Re: Meet r Minus g: A New Way to Worry about Deficit Spending Should Canadians worry about the level of government debt when interest rates are so low? Yes. But the primary danger doesn’t come so much from Canada. Instead, it comes from the fiscal behavior of the […] Ambler, Kronick – What’s Next for Monetary Policy?
From: Steve Ambler and Jeremy M. Kronick To: Canada’s inflation watchers Date: September 30, 2021 Re: What’s Next for Monetary Policy? Earlier this month, the Bank of Canada left its target for the overnight interest rate at 25 basis points while maintaining the pace of its quantitative easing (QE) program by continuing to purchase Government of Canada debt […] Dachis, Kronick – Campaign Housing Platforms Conceal A Central Flaw
To: Canadian housing watchers From: Benjamin Dachis and Jeremy M. Kronick Date: September 15, 2021 Re: Campaign Housing Platforms Conceal a Central Flaw All the major political parties have put out their plans to deal with the housing market crises in Canada’s cities. The focus is on affordability; how to make home ownership easier for Canadians currently priced out […] Can Federal Government Policy Solve The Housing Affordability Problem? – Toronto Star Op-ed
All the major political parties have put out their plans to deal with the housing market crises in Canada’s cities. The focus is on affordability. In other words, how to make home ownership easier for Canadians currently priced out of the housing market. But is there much the federal government can do? Unfortunately, the answer is no, with most levers – especially those that will encourage more supply – at lower levels of government.
First, let’s understand the constraint on affordability. The amount Canadians pay for their mortgages out of their disposable income is roughly the same as 30 years ago. However, with house prices skyrocketing, fuelled by low interest rates, the constraint to home ownership is getting the…
The Parties’ Housing Promises Are Built On Unsound Foundations – Financial Post Op-ed
A basic principle of good governance in Canada is that governments set mandates for crown corporations and regulatory authorities and those arm’s-length institutions then make use of the tools at their disposal to design actual policies. This principle is under threat on the campaign trail as politicians weigh in on one of the issues voters care most about these days, housing affordability.
All parties have put out ideas and plans for taming Canada’s housing markets. They all acknowledge the need to increase supply — which at the end of the day is the only real long-term fix — while trying to free up extra cash for people to make a down payment on a home in their desired neighbourhood. But in the blizzard of proposals there…