James Uguccioni – Improving Employment Insurance Benefits to Protect Children
The C.D. Howe Institute put out a call late last year for Intelligence Memos from next-generation policy leaders. The purpose of the program is to provide a platform for new or soon-to-be graduates to raise their profiles, showcase their ideas, and build their professional networks. This week we are releasing the work of the top […] Global Minimum Tax Could See Canada Suffer Net Reduction in Wealth and Tax Revenues, Need a “Canada First” Approach
The Global Minimum Tax of 15 percent, also called “Pillar Two”, could have a material adverse effect on Canadian wealth and tax revenues, according to a new report from the C.D. Howe Institute. In 2022, the federal budget launched consultations on…Munn, Kronick – A Monetary Policy Primer for All Seasons
To: Canadians Concerned About Inflation From: Duncan Munn and Jeremy M. Kronick Date: May 30, 2022 Re: A Monetary Policy Primer for All Seasons Canada has an inflation problem. It demands action. Constantly rising prices hurt everyone. Effective action requires an understanding of how monetary policy works. Misdirected Bank of Canada bashing threatens the future of inflation control since […]To fix Canadian health care, let’s try the Dutch model – Globe and Mail Op-Ed
The pandemic has revealed the fragility of Canada’s health care system, and there is growing recognition that changes are needed to curb rising costs and promote efficiency. But in a health care financing model such as ours, change is difficult, especially with responsibility spread across various political masters. We should try a different approach, based on a model such as that in the Netherlands, which scores better on criteria such as completeness of coverage and wait times.
Canadian medicare, of course, is often described as a “single-payer model” because everyone in a given province or territory is covered by the same government plan. Doctors and hospitals derive virtually all of their revenue from the government plan in…
Drummond, Sinclair – Calling the Shots on Health Workforce Planning
From: Don Drummond and Duncan Sinclair To: Canada’s Ministers of Health Date: May 27, 2022 Re: Calling the Shots on Health Workforce Planning We need a governance model to call the shots on Health Human Resource Planning (HHRP) in Canada’s provinces and territories, and where it counts most, in the communities and regions where health services are delivered. […] High Inflation Deteriorates Labour Relations
Surging inflation over the past year has Canadians on edge. In addition to the unsettling and even frightening erosion of purchasing power, experience suggests higher inflation may bring strikes and lockouts in its wake. Harmful enough on their own, work stoppages would also worsen the production and supply-chain problems that have contributed to inflation in the […] C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 1.50 Percent Next Week and 2.00 Percent in July, and Sell Bonds
May 26, 2022 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada raise its target for the overnight rate, its benchmark policy interest rate, by 50 basis points to 1.50 percent on June 1st. The MPC recommends further increases over the coming year: to 2.00 percent in July, and 2.50 by December. It also recommends that the Bank accelerate its planned reduction in its holdings of Government of Canada bonds.
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…
Drummond, Sinclair – Why is Health Human Resource Planning Not Happening?
From: Don Drummond and Duncan Sinclair To: Canada’s Ministers of Health Date: May 26, 2022 Re: Why is Health Human Resource Planning Not Happening? Many groups have recently awakened to the need to plan ahead to ensure the supply of qualified providers to meet the changing health and healthcare needs of Canada’s population. We need to embed the use […] Steve Ambler – Quantitative Easing – Unintended Consequences
From: Steve Ambler To: Bank of Canada Governing Council Date: May 25, 2022 Re: Quantitative Easing – Unintended Consequences Rising and persistent inflation in Canada has been blamed on massive money printing by the Bank of Canada. This is far too simplistic. It is only when the Bank of Canada’s purchases of government bonds, which create base money […] Cash in the bank: Cutting through the noise on digital currencies – Globe and Mail Op-Ed
In the debate over whether the Bank of Canada should issue a central bank digital currency, it is tempting to take a black-and-white perspective. But, the truth is subtler. There exists a spectrum of CBDC design possibilities and a proper evaluation of the different options is necessary.
As it turns out, a token-based CBDC – one that mimics cash quite closely – would respect privacy, create an environment for new forms of private money to grow and wouldn’t disrupt the functioning and stability of our financial system.
To understand why this option is optimal, it is first important to distinguish between public and private money. Public money consists of the physical notes and coins in circulation – the cash in your wallet…
Don Quichotte Poilievre s’en va-t-en guerre – La Presse Op-Ed
Comme Don Quichotte qui livrait bataille aux moulins à vent, le candidat au leadership conservateur Pierre Poilievre s’en prend à la Banque du Canada et réclame la tête de son gouverneur, Tiff Macklem, lui reprochant de faire les basses œuvres du premier ministre Justin Trudeau.
Si d’aventure M. Poilievre réussissait son coup, il précipiterait une grave crise de confiance envers la banque centrale, comme celle de l’affaire Coyne, en 1961, avec des conséquences non moins sérieuses pour la réputation du pays.
À l’époque, un conflit entre James Coyne et le premier ministre conservateur John Diefenbaker a forcé la démission du gouverneur. Son successeur, Louis Rasminsky, a cependant obtenu une modification à la loi de la…
Canadians are understandably angry at the Bank of Canada. Here’s what it can do – Globe and Mail Op-Ed
For the first time in years, the Bank of Canada is under attack.
Before the COVID-19 pandemic, the bank kept inflation well under control – remarkably close to its 2-per-cent target – for more than 25 years. Since early 2020, however, inflation has surged. Consumer prices are up almost 7 per cent year-over-year. People are angry, and politics reflects their anger. The answer is simple: The bank must get inflation back down.
Some of the attacks are personal; promises to fire Governor Tiff Macklem have made recent headlines. That does not help. Partly because it tempts the bank’s defenders to respond in kind – to denigrate the attackers or dismiss people’s anger about inflation. Those responses would make a bad situation…