Bank of Canada Policy Must Adapt to Changing Interest Rate Environments
The Bank of Canada needs to take into account prevailing interest rate environments and adjust its monetary policy tools accordingly, finds a new report from the C.D. Howe Institute. In “Lessons from the Yield Curve: Evaluating Monetary Policy in Different Interest Rate…Ambler, Kronick – The Strange Arithmetic of Headline Inflation
To: Canadians Concerned About Inflation From: Steve Ambler and Jeremy Kronick Date: August 30, 2022 Re: The Strange Arithmetic of Headline Inflation Canada’s inflation numbers for July gave those of us who analyze the outlook for prices plenty to think about. The headline inflation number, which measures the increase in prices over the last 12 […]David Gray – Extended Employment Insurance (EI) Benefits for Claimants at Risk of Exhaustion
From: David Gray To: The Hon. Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion Date: August 29, 2022 Re: Extended Employment Insurance (EI) Benefits for Claimants at Risk of Exhaustion With the exception of the pandemic period, the provisions for maximum benefit Employment Insurance (EI) entitlements are a function of two things: i) […] Duval, Allard – Canada’s New Interest and Financing Expense Deductibility Rules
From: Marc André Gaudreau Duval and Marc Pietro Allard To: The Hon. Chrystia Freeland, Minister of Finance and Éric Girard, Quebec Finance Minister Date: August 26, 2022 Re: Canada’s New Interest and Financing Expense Deductibility Rules New rules limiting the deduction of “interest and financing expenses” to a percentage of earnings before interest, taxes, depreciation and […] Canada’s Small Enterprises Hampered by Costly Financing
In this edition of Graphic Intelligence, we compare Canada’s lending conditions for small and medium enterprises (SMEs) to that of a set of OECD countries we are often measured against. Canadian small and medium businesses pay a premium for financing relative to SMEs in other OECD countries. Canada’s SMEs face numerous challenges that impede their ability to scale up. […] John Lester – R&D Tax Credit Review Needs to Focus on the Right Issues
To: The Hon. Chrystia Freeland, Minister of Finance From: John Lester Date: August 24, 2022 Re: R&D Tax Credit Review Needs to Focus on the Right Issues Canada is not keeping up in the global competition for innovation-led growth and prosperity. Our research and development intensity is low relative to other countries and not enough of our inventions […] Parisa Mahboubi on Global – New data reveals that Canada is facing a shortage in Digital and STEM skilled workers
Parisa Mahboubi, author and C.D. Howe Institute Senior Policy Analyst, joined The Morning Show on CKWS to discuss her report “The Knowledge Gap: Canada Faces a Shortage in Digital and STEM Skills” which looks at ways to increase supply of people with digital skills.
Has the economy landed already? Depends which inflation numbers you look at – Financial Post Op-Ed
Last week’s inflation numbers for July gave those of us who analyze the outlook for prices plenty to think about. The headline inflation number, which measures the increase in prices over the last 12 months, clocked in at an unruly 7.6 per cent, while the month-to-month inflation figure came in at a much better-behaved 0.13 per cent, which works out to an annualized 1.6 per cent, which is below the Bank of Canada’s two per cent target.
The June-to-July change was mostly driven by a fall in energy prices, which may or may not be repeated and could easily be reversed if the Russo-Ukraine war or other international conditions worsen. People understand that energy prices go up and down. But the July result does underscore the…
Canada Faces a Serious Shortage in Digital and STEM Skills
Canada faces a serious shortage in employees with digital and science, technology, engineering and mathematics (STEM) skills amid a tight labour market and rising demand for digital-oriented jobs. To address this, Canada needs to increase…The Knowledge Gap: Canada Faces a Shortage in Digital and STEM Skills
Due to rapid digitalization across the economy and an aging population, Canada faces digital and STEM skills shortages. The COVID-19 pandemic has also intensified the need for digital and STEM skills and contributed to the existing shortages. These skills shortages can hurt businesses and affect economic growth. To respond, Canada needs to increase its […] Devlin, Forssell – Quantitative Tightening May Cause Unexpected Trouble
To: Bank of Canada Governing Council From: Ed Devlin and Anders Forssell Date: August 22, 2022 Re: Quantitative Tightening May Cause Unexpected Trouble After bridging the unprecedented pandemic lockdown, we now have inflation the likes of which we haven’t seen in 40 years. In response, the Bank of Canada (BoC) has hiked the overnight rate […] 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.