Ottawa Should Release EI and CERB Data Quickly, Regularly: Crisis Working Group on Household Income and Credit Support
April 13, 2020 – The federal government should release data on Employment Insurance (EI) claims and the Canada Emergency Response Benefit (CERB) on a timely and regular basis, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support.
The group, comprised of Canadian business leaders and economists and chaired by Michael Horgan, Senior Advisor at Bennett Jones LLP and former Deputy Minister of Finance, Government of Canada, held their third meeting on April 7, 2020 to identify and prioritize key policy challenges during the COVID-19 crisis, and consider policy options and recommendations.
In addition to calls for timely and regular data releases, the group recommended a focus on…
Robson, Kronick – Backstopping Provincial Borrowing
From: William B.P. Robson and Jeremy M. Kronick To: Federal and Provincial Finance Ministers Date: April 13, 2020 Re: Backstopping provincial borrowing Governments around the world are responding to the COVID-19 crisis with myriad measures – additional resources for healthcare, supports for individuals and businesses, tax deferrals and public health edicts that have slowed or stopped activity in […] David Powell – Filling The Gap: Support Still Needed For Canada’s Asset-based Finance Sector
To: Department of Finance From: David Powell Date: April 13, 2020 Re: Filling the Gap: support still needed for Canada’s asset-based finance sector The pandemic-induced economic crisis is both unexpected and unique. Otherwise financially viable individuals and businesses may be unable to make their lease or loan payments, which poses the threat of cascading defaults […] Dijkema, Speer – Saving The Charitable Sector From Its Covid Crisis
To: Department of Finance From: Brian Dijkema and Sean Speer Date: April 10, 2020 Re: Saving the charitable sector from its COVID crisis The charitable sector has not been spared by the sharp decline in economic activity brought on by COVID-19. Charities normally function as society’s shock absorbers when crisis hits, but the pandemic poses serious threats to […] For Canada’s Devastated Oil Industry, A Price Floor Would Be A Bridge To Nowhere – Globe And Mail Op-ed
The plunge in global oil demand from COVID-19 shutdowns worldwide represents an existential challenge for Canada’s petroleum producers. Oil prices have cratered as the cartel machinations of the Organization of Petroleum Exporting Countries (OPEC) unravelled in the face of the pandemic. Current forecasts expect that global oil demand will plummet 30 per cent or more from the pre-pandemic levels of roughly 100 million barrels per day.
On Thursday, OPEC members and Russia (OPEC plus) agreed to cut 10 million barrels from daily production but also called on the U.S. and Canada to cut an additional five million barrels’ worth of production per day. After Friday’s meeting of G20 energy ministers, the G20 pledged to do “whatever it…
How to prevent a COVID-19 provincial borrowing crisis – Globe and Mail Op-Ed
Governments around the world are responding to the COVID-19 crisis with myriad measures – additional resources for health care, supports for individuals and businesses, tax deferrals and public health edicts that have slowed or stopped activity in many sectors of the economy. One common consequence of these measures is that governments need massive amounts of money, both to finance the deficits that the new spending and recession will cause, and to backstop credit markets and cover temporary requirements from the delayed collection of taxes.
In addition to longer-term concerns about sustainability and intergenerational fairness, this surge of sovereign borrowing raises more immediate concerns about the willingness and ability of…
Bank of Canada Should Keep Overnight Rate at 0.25 Percent, Support Financial Market Stability through COVID-19 Crisis: C.D. Howe Institute Monetary Policy Council
April 9, 2020 – 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 0.25 percent for at least a year.
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 President and CEO, chairs the Council. Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the subsequent announcement, and the announcements six months and one year ahead.
Although the votes for individual members varied somewhat (see table), reflecting the unusual crisis-…
Canada Must Be Champion of Open Trade: C.D. Howe Institute Crisis Working Group on Business Continuity and Trade
April 9, 2020 – Canada must champion open international trade and remain an ‘honest partner’ in the face of a worrying trend among G7 nations towards export restrictions on critical goods, says the C.D. Howe Institute’s Crisis Working Group on Business Continuity and Trade.
The group of economists and industry experts, co-chaired by Dwight Duncan, Senior Strategic Advisor at McMillan LLP and former Ontario Minister of Finance, and Jeanette Patell, Vice-President of Government Affairs and Policy for GE Canada, held its third meeting on Tuesday, April 7, 2020. They emphasized that open international trade is essential to Canada – both in the immediate crisis and for the long-term. The working group observed a worrisome tide…
Schwanen, Hodgson – The Current Pandemic And Long-term Threats To Supply Chains
From: Daniel Schwanen and Glen Hodgson To: Canadians concerned about COVID-19’s economic impact Date: April 9, 2020 Re: The current pandemic and long-term threats to supply chains “Know your customer” is a familiar rule in investing and finance. Even before COVID-19, however, the world was moving to a “know your supplier” requirement for supply chains, movement of people, […] Janet Ecker – Some Questions About The Aftermath
To: Canadians concerned about COVID-19 From: Janet Ecker Date: April 9, 2020 Re: Some questions about the aftermath I was finance minister when SARS hit, worked for the minister of environment back when we dealt with the Mississauga train disaster and had a ringside seat for the global financial crisis as CEO of the Toronto Financial Services Alliance. Those […] Let Canadians access their RRSP wealth for an immediate, cheap source of financial assistance – Financial Post Op-Ed
In recent weeks, Ottawa has announced several financial assistance measures for those most affected by the COVID-19 crisis. They include increased flexibility for employment insurance benefits, generous wage subsidies for businesses, and an emergency response benefit of $500 per week for affected workers and caregivers. But these programs pose implementation challenges that could result in Canadians waiting weeks to receive the financial assistance they need, assuming they qualify at all.
An unprecedented demand spike is already challenging the capacity of the employment insurance system, especially with Ottawa having closed Service Canada outlets across the country. Technical difficulties around eligibility conditions for the…
COVID-19 Response Lacking Information and Supplies: Crisis Working Group on Public Health and Emergency Measures
April 8, 2020 – Addressing the poor coordination of laboratory infrastructure and shortages of personal protective equipment for frontline workers must be the top priority for health officials, according to the Institute’s Crisis Working Group on Public Health and Emergency Measures. In addition, proactive guidance for health care providers and institutions about appropriate practices for directing limited supplies and their reuse would reduce the negative effects of shortages in critical supplies where they arise.
The group also noted there are still places and populations where rapid testing, widely deployed, with rigorous contact tracing and isolation could keep the virus at bay.
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