Housing Bubbles and the Consumer Price index: A Proposal for a Better Inflation Indicator
The Bank of Canada needs a better inflation indicator that is more sensitive to swings in house prices than the Consumer Price Index (CPI), according to a new report from the C.D. Howe Institute. In “Housing Bubbles and the Consumer Price Index: A Proposal for a Better Inflation Indicator,” Philippe Bergevin points out the CPI […] Combatting the Dangers Lurking in the Shadows: The Macroprudential Regulation of Shadow Banking
Financial regulators should turn their attention to the potential threats to financial stability lurking in the shadow banking system, according to a report released today by the C.D. Howe Institute. In “Combatting the Dangers Lurking in the Shadows: The Macroprudential Regulation of Shadow Banking,” David Longworth, former deputy governor of the Bank of Canada, argues […] Désintoxiquer Les Investisseurs: La Presse Op-ed
Publié dans La Presse le 30 Juillet, 2012.
Par Stéphane Rousseau
Depuis la crise financière, les régulateurs déploient des efforts pour encadrer les agences de notation de crédit. Malheureusement, les réformes canadiennes ne vont pas suffisamment loin. Et certaines d’entre elles vont malheureusement dans la mauvaise direction.
Nombreux sont les observateurs qui signalent que les agences de notation ont joué un rôle central dans la crise. Alors que les turbulences sur les marchés s’accentuaient, les agences ont procédé à des décotes substantielles de titres notés triple A. Par la suite, des rapports ont identifié des défaillances de la part des agences qui ont affecté la qualité et l’intégrité du processus de…
A Question of Credibility: Enhancing the Accountability and Effectiveness of Credit Rating Agencies
Major reforms should be pursued to enhance the accountability and effectiveness of Credit Rating Agencies (CRAs) according to a new report from the C.D. Howe Institute. In “A Question of Credibility: Enhancing the Accountability and Effectiveness of Credit Rating Agencies,” Stéphane Rousseau, Chair in Business Law, Université de Montréal, notes in the wake of the […] Finding Common Cause: The Renewed Quest for a National Securities Regulator
In the wake of a setback from the Supreme Court of Canada, Ottawa is forging ahead with the idea of creating a national securities regulator using a cooperative approach that could pay off, according to a new report from the C.D. Howe Institute. In “Finding Common Cause: The Renewed Quest for a National Securities Regulator,” […] Debit, Credit and Cell: Making Canada a Leader in the Way We Pay
Canadians are avid users of debit cards, credit cards and online payments, but our payment system needs reform to spur innovation, according to a report released today by the C.D. Howe Institute. In “Debit, Credit and Cell: Making Canada a Leader in the Way We Pay,” authors Philippe Bergevin and Todd Zywicki argue the country’s […] Reducing the Potential for Future Financial Crises: A Framework for Macro-Prudential Policy in Canada
Canada needs a policy framework and new governance structure beyond what is in place to reduce the potential for future financial crises, according to Paul Jenkins, former Senior Deputy Governor, and Gordon Thiessen, former Governor of the Bank of Canada. In “Reducing the Potential for Future Financial Crises: A Framework for Macro-Prudential Policy in Canada,” […] Consumer debt: concerning but not critical: Financial Post Op-Ed
Published in the Financial Post on April 11, 2012
By Philippe Bergevin and James MacGee
As a percentage of income, Canadian household debt levels are higher than at any point in recent history and now higher than those of U.S. households. This raises concerns over the sustainability of household finances, the risks to the broader economy and the merits of government intervention.
Recent debate has understandably focused on the housing market and on the risks associated with household mortgage debt. But consumer credit, which excludes mortgages but includes household debt such as auto loans, credit card debt and lines of credit, has risen by more than a factor of five since the late 1970s and, at 43% of disposable…
The Rise in Consumer Credit and Bankruptcy: Cause for Concern?
Canadian households are saddled with unprecedented amounts of debt through bank loans, credit cards and lines of credit, according to a report released today by the C.D. Howe Institute. In The Rise in Consumer Credit and Bankruptcy: Cause for Concern?, author James MacGee finds that debt levels associated with consumer credit are higher than at […] The good, the bad and the ugly: Financial Post Op-Ed
Published in the Financial Post on March 30, 2012
By Finn Poschmann
Finance Minister Jim Flaherty’s March 29 budget reveals some interesting thinking on key financial sector and business policy issues.
First up is a commitment to a legislated covered-bond framework. The housing market, and the housing-finance system, will benefit from a mature financing vehicle that is backed by residential mortgages and the full faith and credit of lending institutions. Even better, as this market continues to develop, housing finance will flourish, out from under the wing of taxpayer backing. This would be good, and Canadians should watch closely for the details — that is because the budget advertised the commitment to a framework…
The banks did it: Financial Post Op-Ed
Published in the Financial Post on March 7, 2012
By Philip Cross
After Ontario Premier Dalton McGuinty suggested that Canada’s oilsands exports raised the exchange rate and the loonie to the detriment of Ontario’s manufacturing base, many came to believe that oil prices are driving the exchange rate, and that the loonie is a petro-currency.
Before this becomes an orthodoxy in public discussions about our economy, let’s consider another feature of our economy that has been increasingly attractive to people outside of Canada in recent years: our financial system.
Canada’s banking system is easily the soundest in the G20 group of nations, having emerged virtually unscathed from the financial crisis that…
Saving Pooled Registered Pension Plans: It’s Up To the Provinces
The federal government’s design for Pooled Registered Pension Plans (PRPPs), as proposed in Bill C-25, has flaws that need fixing to meet the needs of Canadians without a workplace pension plan, according to a report released today by the C.D. Howe Institute. In “Saving Pooled Registered Pension Plans: It’s Up To the Provinces,” authors Keith […]