Op-Eds
Last week, the Bank of Canada held its overnight rate, its benchmark policy rate, at 4.5 per cent. No surprises there. In its last announcement, the bank told us the data were consistent with their view that, with the target rate where it is, inflation would come back down to three per cent by the middle of this year. Data since have not changed governing council’s view that at present more tightening wasn’t necessary.
In fact, if anything, the major economic development over the last six weeks, the failures of Silicon Valley Bank (SVB) and Signature Bank, as well as the emergency takeover of Credit Suisse by UBS Group AG, made caution even more prudent. Furthermore, it might actually make the…
Stablecoin could be really useful money so let’s regulate it like money - Financial Post Op-Ed
The knock-on effects from the failure of Silicon Valley Bank also spread to stablecoins. The day after SVB’s failure, USDC, the world’s second-largest stablecoin, announced it had $US3 billion on deposit with SVB and promptly, but briefly, lost its peg to the U.S. dollar. Some people will see this as another nail in stablecoin’s coffin. In our view, it’s another example of why the federal government needs to establish a legal and regulatory framework for stablecoins that seek to serve as money. If it aims to be money, and it could be money, let’s regulate it like money.
Bitcoin may get all the headlines, but without any asset backing it, it has no future as money. Stablecoins do. They are crypto assets in that they…
Since starting its fight against inflation last March the Bank of Canada has been focused on little else. That is in stark contrast with many of the country’s finance ministers, who have raised spending and increased government hiring. Coordination between our monetary and fiscal authorities would make the Bank’s job a lot easier. Failing that, however, the Bank should continue do what is necessary to get inflation back to target.
The onset of the pandemic saw unprecedented coordination between fiscal and monetary authorities around the globe, including in this country. The Bank of Canada lowered its policy rate to its effective lower bound (0.25 per cent) and then turned to less conventional monetary…
When everyone understands the role they play, this leads to better public policy. For our monetary and fiscal authorities, this means central bankers ensuring a stable value for the currency they oversee, and governments creating the conditions for strong economic growth.
Unfortunately, we lack that in Canada right now, with inflation as high as it has been in 40 years, and an economy potentially heading toward a recession. The Bank of Canada is working hard to bring down inflation. If governments were indeed boosting the economy’s potential, it would make the bank’s job a heck of a lot easier.
With mandates that target inflation – and ones that target maximum sustainable employment as well, such as that of…
La nature a beau être aimée de tous, il sera difficile de trouver tout l’argent nécessaire pour stopper, puis renverser sa perte de biodiversité, ai-je constaté en allant fouiner à la COP15. Un beau défi pour la finance durable.
L’expression « 30 x 30 » qui a retenu l’attention fait allusion aux 30 % de la terre et aux 30 % de l’eau qui doivent être protégés d’ici 2030. Mais elle désigne aussi les 30 milliards de dollars américains* d’aide annuelle aux pays en développement promise à partir de 2030.
Ce deuxième 30 x 30 est un compromis. Les pays riches étaient réticents, eux qui n’arrivent pas à livrer les 100 milliards par an promis au Sud pour lutter contre le…
