Ambler, Kronick – What’s Next for Monetary Policy?

William White on BNN – Central Banks Are Caught in a Debt Trap

William White, Senior Fellow at C.D. Howe Institute and former Bank of Canada Deputy Governor, joined BNN Bloomberg to discuss the role of central banks as inflation rises around the world and the challenges of rebuilding Canada’s economy ahead of a federal election.

The Leaders Really Should Talk Monetary Policy – Financial Post Op-ed

Statistics Canada’s latest gross domestic product release contained at least two surprises. The first was that real GDP fell at an annualized rate of one per cent in the second quarter. That made headlines. With all the stimulus and rising optimism about recovery from the COVID recession, why the setback?

But a second surprise was that nominal spending — measured in the dollars that actually changed hands, before adjustment for price changes — rose at an eight per cent annualized rate. That raised eyebrows. The difference between a one-per cent real fall and an eight-per cent nominal rise is nine per cent higher prices. Real activity slipped a little. The value of our money slipped a lot.

We already knew that consumer…

L’étau réglementaire se resserre sur les cryptos – La Presse Opinion

La partie ne sera pas facile, mais les régulateurs ont commencé à serrer la vis au Bitcoin, à ses milliers de cousins cryptos et aux infrastructures qui gravitent dans cet univers opaque et apatride.

La Financial Conduct Authority du Royaume-Uni, incapable de superviser adéquatement Binance, la plus grande Bourse de cryptomonnaies au monde, interdit ses activités sur son territoire. La plateforme n’a pas répondu aux questions de base posées par le régulateur, qui estime que ses « produits complexes et à haut risque » font courir des « risques significatifs » aux investisseurs.

Binance, incorporée dans les îles Caïman, n’a pas de siège social. Chaque mois, il se négocie sur cette Bourse immatérielle des…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate Target at 0.25 Percent through Fall, Maintain Bond Purchases at $2 Billion per Week

September 2, 2021 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent through October, before raising it to 0.50 percent by March of 2022, and to 0.75 percent by September of 2022. It also recommends that the Bank maintain its quantitative-easing purchases of Government of Canada bonds at the current pace of $2 billion per week.

The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s CEO, chairs the Council. Council members make recommendations for the Bank of Canada’s upcoming…

S3 E17: Normalizing Monetary Policy with Robert S. Kaplan

Bank Of Canada Has Loosened Policy Over The Past Six Weeks – Globe And Mail Op-ed

On Wednesday, the Bank of Canada left its target for the overnight rate at 25 basis points while scaling back its quantitative easing (QE) program, reducing the pace of its purchases of Government of Canada debt from $3-billion a week to $2-billion. Lifting its foot off the QE pedal is warranted given recent inflation readings and other underlying metrics. At the same time, however, the unchanged overnight rate target actually represents an easing of monetary policy since the bank’s last announcement six weeks ago, because inflation expectations have increased, and the recovering economy has probably raised the level of the overnight rate that would be consistent with steady growth and 2-per-cent inflation.

Let’s unpack these two…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate Target at 0.25 Percent until Fall, Hike to 0.50 Percent by Next July, Reduce Bond Purchases

July 8, 2021 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent at least until January of 2022, and raise it to 0.50 percent by July of 2022. It also recommends that the Bank reduce its quantitative-easing purchases of Government of Canada bonds below its current pace of $3 billion per week.

The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s CEO, chairs the Council. Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the…

William B.P. Robson – Brakes, Please, for Your Tag-team Stimulus

Mission Creep and Monetary Policy

Our stimulus tag-teams need to cool it – Financial Post Op-Ed

Governments in the advanced economies mounted a massive fiscal response to the COVID crisis. They ramped up spending, mainly on income supports to individuals and businesses, and financed it by borrowing. Central banks also responded on a massive scale. They dropped their policy interest rates close to zero, and their balance sheets ballooned as they bought securities — mainly government debt — and flooded the global financial system with liquidity.

These responses undoubtedly cushioned the COVID blow to our economies. But, more than a year later, especially in the United States and Canada, both fiscal and monetary policy are still in overdrive. It is reasonable to worry that they are going too far.

On the fiscal side, the…

Ambler, Kronick, Robson – Taking Inflation Warnings Seriously