High stakes in the telecom wars – Financial Post Op-Ed
Policy decisions coming soon from the CRTC, the federal telecommunications regulator, are going to shape major investment decisions with critical impacts on our economy. Canadian governments need to get the right balance between investment and sustainable competition. Failure to do so will jeopardize efforts to get Canadian communities digitally connected and hence our ability as a nation to participate in an increasingly digital world economy.
The next generation of technology investment — “5G” — is critical to the economy’s future. For example, it will be key to commercializing innovations in precision agriculture. It will enable rural economic development, such as automated hauling at mine sites, and underpin further…
William B.P. Robson – Borrowing Is No Foundation For Durable Federal Programs
From: William B.P. Robson To: The House of Commons Standing Committee on Finance Date: March 19, 2021 Re: Borrowing is No Foundation for Durable Federal Programs The federal government’s current reliance on borrowing rather than taxation to fund its programs is unprecedented. That means that the apparent cost of federal programs to taxpayers is unprecedentedly […] The Impact of Monetary Policy on Financial Stability
Easy Money Unlikely to Cause Financial Instability in Canada On the heels of the Bank of Canada reiterating they will keep interest rates low, authors Jeremy Kronick and Steve Ambler explore the effect monetary policy has on financial stability and consider whether Canadians should be worried about the impact of low interest rates. To study […] Easy Money Unlikely to Cause Financial Instability in Canada
Monetary policy stimulus alone won’t cause a financial crisis in Canada, says a new report from the C.D. Howe Institute. On the heels of the Bank of Canada reiterating they will keep interest rates low, authors Jeremy Kronick and Steve Ambler explore the effect monetary…The Bank of Canada needs to manage inflation expectations – Financial Post Op-Ed
The Bank of Canada stuck to the status quo last week, leaving its target for the overnight interest rate at 25 basis points and maintaining quantitative easing (QE) at a rate of at least $4 billion of bond purchases per week. But it did so in the context of higher inflation and a stronger-than-expected economy. With good news on the vaccination front and the prospect of more economic activity in the near term, there is reasonable concern the recent rise in inflation is more than just a one-off rebound from depressed prices a year ago. The Bank’s challenge now is to manage, not just inflation, but inflation expectations, as well.
Year-over-year headline inflation increased from 0.7 per cent in December to 1.0 per cent in January,…
Rosalie Wyonch – Addressing Canada’s Healthcare Labour Shortage
From: Rosalie Wyonch To: Canadians Concerned about Healthcare Date: March 18, 2021 Re: Addressing Canada’s Healthcare Labour Shortage Gaps in access to healthcare have long been a challenge in Canada, but became a top priority in the midst of the COVID-19 infectious disease crisis. The existing labour supply and mix of professionals puts fundamental limits on the healthcare system’s […] How a GHG ruling could affect import tax – Globe and Mail Op-Ed
Some time in the next while, the Supreme Court of Canada will issue its decision on the constitutionality of the federal Greenhouse Gas Pollution Pricing Act. Politicians in Alberta, Saskatchewan, Manitoba and Ontario will dance in the streets if the Supreme Court overturns the legislation. They argue that, by putting a price on carbon emissions, it is just a disguised tax measure encroaching on provincial jurisdiction. For others, such a decision would be a regrettable setback, limiting and possibly preventing any meaningful pan-Canadian climate-change policy.
What hasn’t been mentioned in media circles, and wasn’t raised in arguments at the Supreme Court, is that if the court says the act is unconstitutional, together with…
S3 E5: The Next Green Bond Wave with Glen Hodgson
The explosive growth in demand for green bonds is expected to return post-COVID. C.D. Howe Institute Senior Fellow Glen Hodgson tells Michael Hainsworth the pandemic has given the oil patch, foreign investors, and Ottawa an opportunity to rebuild the economy around green thinking. Read the full report Glen Hodgson – Federal Green Bonds Could Build Capacity, Impose Order
From: Glen Hodgson To: Canada’s Ministers of Finance Date: March 16, 2021 Re: Federal Green Bonds Could Build Capacity, Impose Order The green bond market was growing rapidly – to $257 billion globally in 2019 – until the pandemic hit in 2020. As the recovery unfolds, green bonds – fixed-income securities used to finance sustainable projects – appear poised […] Paul Jenkins – Time Inconsistency And Inflation Expectations
From: Paul Jenkins To: Canada’s Monetary Policy Community Date: March 15, 2021 Re: Time Inconsistency and Inflation Expectations Many analysts and pundits have been pointing to well-anchored inflation expectations as an important reason why inflation risks remain low in Canada and elsewhere, notwithstanding the very accommodative stance of monetary policies, strongly expansionary fiscal policies, and […] Is Inflation Back? It’s Not An Economic Question, It’s Political – Globe And Mail Op-ed
Suddenly, inflation is in the news. In Canada and abroad, spending is surging and COVID-impaired production is struggling to keep up. Key commodities – oil, lumber and metals – are expensive.
It is front-of-mind in financial markets as well. The yield on the federal government’s 30-year bonds, which was below 0.9 per cent last August, topped 2.0 per cent last week – well above its pre-pandemic level.
Do these headlines and fears represent overreactions to rogue statistics and possible minor tactical shifts by central banks? Or is something more fundamental happening? Will politicians who won’t stop spending more than they tax end up forcing central banks to print money to cover the difference?
Current indicators and…
Leagh Turner – The Frictionless Future For The World Of Work
From: Leagh Turner To: Canadian Employers Date: March 12, 2021 Re: The Frictionless Future for the World of Work COVID-19 has accelerated changes in almost every aspect of daily life, especially work, where a sea of change is breaking decades-old paradigms to meet the demands of a more fluid and frictionless workforce. And as organizations navigate these uncertain […]