Let it Fail? Reflections on the SVB Collapse and the US and Canadian Approaches to Bank Crises
Despite having highly similar economies, in banking the experience of the crisis-prone United States contrasts starkly with Canada’s stability. For each major US crisis, different reasons have been put forward to explain Canada’s comparative stability in the face of broadly similar shocks, an issue that arose again in the context of the failure of […] Peter Hall – India: Opportunity Lost?
From: Peter Hall To: International trade watchers Date: December 6, 2023 Re: India: Opportunity Lost? It couldn’t be happening. Years of careful and painstaking cultivation of political, cultural and business relations with India suddenly seem in tatters. A G20 summit in New Delhi in September where Canada seemed to be sidelined, followed by shocking and very public […]Despite the Bank of Canada’s continued tough talk, rate cuts are coming – Globe and Mail
The Bank of Canada surprised no one by holding its target for the overnight lending rate at 5 per cent on Wednesday. Last week’s releases by Statistics Canada showing a decline in third-quarter GDP and an uptick in the unemployment rate sealed the deal.
Nevertheless, the announcement made it clear that the bank is not satisfied with the pace at which inflation is falling, stressed that the fight against inflation is not yet won, and stated that they stand ready to boost rates again if inflation numbers disappoint.
It’s clear that the bank is concerned about inflation expectations becoming de-anchored from the 2-per-cent target. They continue to prioritize re-establishing any…
Double the Pain: How Inflation Increases Tax Burdens with Bill Robson and Alex Laurin
Inflation acts as an additional tax on Canadians, and when inflation is high, the pain is exacerbated. So what’s the solution? Host Michael Hainsworth speaks to C.D. Howe Institute CEO Bill Robson and Director of Research Alexandre Laurin to understand how Ottawa can ease the pain no matter the inflation rate.
Duncan T. Munn – Nuclear Energy and LNG are Keys to Low-Carbon Canada
From: Duncan T. Munn To: Energy observers Date: December 4, 2023 Re: Nuclear Energy and LNG are Keys to Low-Carbon Canada The national conversation about net-zero has tended to focus on renewable energy, such as wind and solar, both of which have important roles to play. But nuclear energy and liquefied natural gas (LNG) have also emerged as pragmatic […] Mahboubi, Zhang – Navigating Labour Shortages: A Strategic Path for Canada’s SMEs
From: Parisa Mahboubi and Tingting Zhang To: Canadian Labour Force Observers Date: December 1, 2023 Re: Navigating Labour Shortages: A Strategic Path for Canada’s SMEs Your local entrepreneur, whether a coffee shop owner or a medium-sized manufacturer, has a problem. They are likely to face labour shortages that stymie their growth plans and reduce their significant contribution to […] C.D. Howe Institute Monetary Policy Council to Bank of Canada: Hold Overnight Rate at 5.00 Percent until January, Cut to 4.00 Percent by End of 2024
November 30, 2023 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada maintain its target for the overnight rate, its benchmark policy interest rate, at 5.00 percent at its next announcement on December 6th. The MPC further recommends that the Bank keep the target at 5.00 percent in January 2024, before reducing it to 4.75 percent by June of 2024 and to 4.00 percent by December of 2024.
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 – Ottawa’s Unserious Fiscal Policy Rolls On
From: William B.P. Robson To: Fiscal observers Date: November 30, 2023 Re: Ottawa’s Unserious Fiscal Policy Rolls On The 2015 federal election heralded a new approach to federal fiscal policy. Serious was out. Spending only as much as revenue would cover was not cool. Unserious was in. Deficits were the new thing. That was inevitable during the pandemic. For […] Marcel Saulnier – Getting on with National Pharmacare
From: Marcel Saulnier To: Canadians Concerned About Healthcare Date: November 29, 2023 Re: Getting on with National Pharmacare Over four years ago, the Advisory Council on the Implementation of National Pharmacare set out a roadmap to address one of the most significant areas of unfinished business in Canadian medicare. Fast forward to the end of 2023, and there […] Lawrence Herman – Canada’s Digital Tax Ship Still Sails Even as Rollout is Delayed
From: Lawrence Herman To: Canadian trade observers Date: November 28, 2023 Re: Canada’s Digital Tax Ship Still Sails Even as Rollout is Delayed The Fall Economic Statement confirmed the federal government’s intention to eventually proceed with its Digital Services Tax (DST), a measure proposed back in 2020, even as it postponed its January 1 implementation. Under the proposal, Ottawa […] Fall Economic Statement gets a D. Re-write needed before March – Financial Post
Before the release of the federal 2023 Fall Economic Statement, we laid out a framework for grading it. We hoped for transparency about the government’s finances, frankness about the economic and fiscal challenges, and a halt to populist tax measures. Sadly, the Statement presented by Finance Minister Chrystia Freeland falls short — often far short — on all these priorities.
Our overall grade for the 2023 Fall Statement is a D. It puts dozens of pages of political messaging ahead of the key numbers, avoids the serious challenges that require major shifts in policy and prefigures more of the same fiscal measures that have led to our current plight.
Our grading framework started with a simple request: Cut…
Structuring Success: Canada’s Competition Act Must Remain Effects-based
The C.D. Howe Institute Competition Policy Council (the Council) met on Friday, October 13, 2023, to debate the calls for bright-line rules and presumptions, and whether such proposals are an appropriate approach to competition law enforcement that would effectively address issues of affordability and lagging productivity in Canada.
The tabling of a Private Member’s Bill on September 18, 2023, by Jagmeet Singh, leader of the New Democratic Party, titled Lowering Prices for Canadians ActOn September 18, 2023, NDP leader Jagmeet Singh introduced Bill C-352, a Private Member’s Bill which includes, among other amendments, proposals to introduce market-share thresholds into the merger review process of the …