C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate Target at 0.25 Percent Next Week, Hike to 1.00 Percent Next Year, Cut Bond Purchases
October 21, 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 December, before raising it to 0.50 percent by April of 2022, and to 1.00 percent by October of 2022. It also recommends that the Bank reduce its quantitative-easing purchases of Government of Canada bonds from 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…
Nowhere to Go at the End
People approaching the end of life often require an intensification of healthcare services, and the majority could benefit from palliative care prior to death. With its focus on improving comfort and quality of life, palliative care tends to avoid hospital-based, invasive, costly and potentially inappropriate care. Palliative care is preferably (but not always) delivered outside […] Canada’s Sky-High Costs for End-of-Life Care Need Solutions
Despite spending more on medical care delivered at the end-of-life than other high-income countries, Canada performs poorly on most measures of healthcare quality – meaning Canadians are not getting value for their money, according to a new…Glen Hodgson – Complications Abound in the Pandemic Recovery
From: Glen Hodgson To: Concerned Canadians Date: October 19, 2021 Re: Complications Abound in the Pandemic Recovery The Canadian economy is on the rebound from the pandemic shutdown and most economic forecasters are projecting positive growth into the medium term. This good news story conceals deeper factors that will complicate the recovery and longer-term outlook. The potential for […] Angelo Nikolakakis – Global Tax Deal: Who Wins and Who Loses?
From: Angelo Nikolakakis To: Finance Minister Chrystia Freeland Date: October 20, 2021 Re: Global Tax Deal: Who Wins and Who Loses? Headlines abound on recent developments toward the widespread – but not universal – adoption of a new approach to the taxation of large multinational enterprises (MNEs). Last week, a G20 Communiqué proclaimed an “historic agreement” that “will establish a […] Balyk, Dachis, DeLand – Alberta’s Outdated Oil Sands Royalty Regime Needs a Fix
From: Joel Balyk, Benjamin Dachis and Charles DeLand To: Alberta oil royalty regulators Date: October 18, 2021 Re: Alberta’s Outdated Oil Sands Royalty Regime Needs a Fix Canada’s oil sands accounted for 63 percent of oil production in Canada in 2019, and their royalties have been the source of 7.7 percent of Alberta’s revenues since 2008. The province […] Les aveugles et l’éléphant – La Presse Opinion
Comme dans la parabole bouddhiste, on examine souvent la dette publique tels les six aveugles qui tâtent différents bouts de l’éléphant et qui tentent de se faire une idée de la bête. Or, en renonçant à l’aveuglement volontaire des idées préconçues, on peut se faire une idée plus complète des finances publiques, mises à mal par la pandémie.
J’avais particulièrement hâte d’examiner mercredi les derniers chiffres du Fonds monétaire international (FMI) sur l’endettement des pays, mesuré de manière assez comparable, quelle que soit leur répartition des responsabilités entre les niveaux de gouvernement.
On y constate que la dette brute du Canada, incluant toutes les administrations publiques, a bondi de 23,1 % du…
Will there ever be another NHL franchise in Canada? The economics suggest not – Globe and Mail Op-Ed
A new NHL season has arrived – notably with the addition of the Seattle Kraken as the league’s 32nd franchise. The emergence of another American team in a league that only has seven Canadian ones, however, begs the question: What would it take for Canada to secure another NHL franchise? Will it ever happen? The answer requires examining the prospect of financial success.
A first core factor is market size and consumer demand. Having a large enough population with a passion for the sport is key to ensuring that there are not only enough viewers at home to satisfy TV advertisers, but that home arena seats can be filled every game night. Attending a professional sports event is expensive, so relatively high income levels are…
Should ‘gig’ Workers be Covered by the EI regime? The Challenges and Pitfalls
Providing Gig Workers with EI: No Easy Answer There is no easy solution to the challenge of including gig workers or self-employed workers in Canada’s Employment Insurance (EI) system, according to a new report released by the C.D. Howe Institute. Author David Gray casts an evaluative lens on the case – especially as ‘gig workers’ […] Providing Gig Workers with EI: No Easy Answer
There is no easy solution to the challenge of including gig workers or self-employed workers in Canada’s Employment Insurance (EI) system, according to a new report released by the C.D. Howe Institute.…Alexandre Laurin – Tracking Capital Gains: Not Just for the Rich
From: Alexandre Laurin To: Finance Minister Chrystia Freeland Date: October 14, 2021 Re: Tracking Capital Gains: Not Just for the Rich Government deficits, along with distributional concerns, have fueled calls for heavier taxation of capital gains in recent years. Yesterday, we examined modelling around taxpayer responses to any increases. Today, still working off my article in the latest issue […] Alexandre Laurin – The Impact of Taxpayers’ Reaction to a Capital Gains Tax Increase
From: Alexandre Laurin To: Finance Minister Chrystia Freeland Date: October 13, 2021 Re: The Impact of Taxpayers’ Reaction to a Capital Gains Tax Increase Government deficits have fueled calls for heavier taxation of capital gains in recent years. I estimated the increase in personal tax revenues from increasing the capital gains inclusion rate from its current 50 percent of […]