Thorsten Koeppl – For More And Swift Action, Just Look To Germany
To: Department of Finance From: Thorsten Koeppl Date: March 16, 2020 Re: For More and Swift Action, Just Look to Germany Over the past two weeks, both the Bank of Canada and the Department of Finance have weighed in with emergency measures to limit the economic damage from COVID-19. First was the Bank of Canada’s […] Laurin, Robson – Crisis Relief For Canadian Savers
To: Finance Minister Bill Morneau From: Alexandre Laurin and William Robson Re: Crisis Relief for Canadian Savers Date: March 16, 2020 Plummeting stock markets are aggravating anxiety and the potential economic impact of COVID-19. The market crash is worst for older Canadians who rely on savings in registered retirement saving plans (RRSPs) and defined-contribution pension […] Bill Robson on BNN – RRSP age limit needs to be raised amid COVID-19 crisis
Bill Robson, president and CEO of the C.D. Howe Institute, explains why he thinks the government of Canada should be allowing Canadians to contribute to their RRSPs past 71 and eliminate the drawdowns in RRIFs as markets continue to plunge due to the COVID-19 outbreak.
During This Pandemic, Canadians Are Feeling Real Financial Stress. Here’s How Governments Can Help – Globe And Mail Op-ed
Actions and promises from policy makers last week gave Canadians badly needed signs that elected leaders and officials are working to limit the impact of COVID-19 on their health and their economy.
An emergency interest-rate cut from the Bank of Canada, and its new facility to support short-term credit, will help. Relaxed capital standards to facilitate bank lending from the Superintendent of Financial Institutions are also welcome. The federal government has announced some targeted spending, and plans to make credit available through Crown lenders. Finance Minister Bill Morneau has promised more fiscal measures shortly.
Helpful though these moves and announcements are, the economic repercussions from COVID-19 threaten to…
Ambler, Kronick – The Covid-19 Monetary Policy Problem
From: Steve Ambler and Jeremy M. Kronick To: Bank of Canada Watchers Date: March 13, 2020 Re: The COVID-19 monetary policy problem The Bank of Canada was right to cut interest rates last week, but 25 basis points rather than 50 would have kept valuable firepower in reserve in case, as seems likely, it’s needed in coming weeks. […] The Era of Digital Financial Innovation: Lessons from Economic History on Regulation
Rapid growth in financial innovation needs regulators’ attention Economic history gives us many examples of instances when financial innovations, rapid growth in credit supply and increased reliance on short-term financing have led to financial instability and crises. Therefore, at a time of rapid changes in the financial sector, it is important that regulators pay close […] Rapid Growth In Financial Innovation Needs Regulators’ Attention
Rapid digital innovation in finance, such as artificial intelligence and open banking, can provide myriad benefits to both consumers and financial institutions, but poses risks to financial stability, says a new report from the C.D. Howe Institute. In “The Era of Digital…Alberto Alesina – Explaining Austerity
From: Alberto Alesina To: Canadians concerned about government budget deficits Date: March 12, 2020 Subject: Explaining austerity For more in-depth discussion on this topic, listen to the C.D. Howe Institute podcast interview of Harvard’s Alberto Alesina hosted by Michael Hainsworth, which is summarized here. Austerity very simply is a policy or a combination of policies needed to reduce […] Bank of Canada should have kept more of its powder dry in case things get worse – Financial Post Op-Ed
The Bank of Canada was right to cut interest rates last week but it may have been wiser to reduce them by only 25 basis points rather than 50 and thus keep more firepower in reserve in case it’s needed in coming weeks.
The Bank likely was leaning heavily towards an interest rate cut even before the Fed’s unscheduled and surprising 50 basis point federal funds rate cut last Tuesday. That might have given the Bank the final nudge to follow suit in its regularly scheduled rate decision a day later. Given the complexity of COVID-19, a cut of at least 25 basis points was likely the right call. The key was to move swiftly and decisively, which the Bank did. The only uncertainty was whether it would take as drastic a step as the Fed. In…
Bill Robson on BNN – COVID-19 and Fiscal Aid
Bill Robson, President and CEO at the C.D. Howe Institute, breaks down the Bank of Canada’s rate cut and Finance Minister Bill Morneau’s support funding markets for businesses. Robson says that the government should be focusing on delivering the aid upfront rather than spreading it overtime, to try and help companies as soon as possible without prolonging the complications.
S2 E4 – Shadow Budget 2020
Ottawa is preparing its 2020 Federal Budget, and the Institute is urging Parliament Hill to cut the corporate tax rate and address the impact of COVID-19 on the Canadian Economy. CEO Bill Robson tells host Michael Hainsworth, further measures may be required. Read the full report Kronick, Robson – The Bank Of Canada And Covid-19
To: Monetary Policy Watchers From: Jeremy M. Kronick and Bill Robson Date: March 11, 2020 Re: The Bank of Canada and COVID-19 With 50-basis-point cuts in their policy interest rates last week, the Bank of Canada and the US Federal Reserve sharpened debate about how central banks should respond to the threat to our health […]