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Every 5 years the federal Finance Minister updates the “marching orders” that guide the Bank of Canada and its conduct of monetary policy. This process is the one opportunity for democratic oversight of the Bank, which otherwise is deemed to be operating “independently” of government — all the better to ensure that it has the […]
Over at the web site of the Calgary Homeless Foundation, I have a blog post titled: “Ten things to know about the 2016-17 Alberta budget.” The link to the post is here.
Posted by Nick Falvo under Alberta, budgets, carbon pricing, child benefits, climate change, corporate income tax, debt, demographics, energy, environment, federal budget, health care, homeless, housing, HST, income support, income tax, inflation, population aging, poverty, public services, seniors, social policy, taxation.
May 3rd, 2016
Over at the blog of the Institute for New Economic Thinking, Ottawa U professor Mario Seccareccia has given an interview titled “Greece Shows the Limits of Austerity in the Eurozone.Â What Now?” The interview can be read here.
Posted by Nick Falvo under banks, budgets, capitalism, debt, deficits, deflation, democracy, economic crisis, economic history, Europe, exchange rates, financial crisis, Greece, IMF, inflation, monetary policy, recession, taxation, unemployment, wages.
February 5th, 2015
Louis-Philippe Rochon has written a provocative blog post for the CBC titled “Top 10 Economic Predictions for 2015.” The post is available here.
Posted by Nick Falvo under Bank of Canada, banks, budgets, Conservative government, consumers, deficits, economic growth, economic models, economic thought, employment, Europe, exchange rates, federal budget, fiscal policy, household debt, housing, inflation, interest rates, monetary policy, oil and gas, prices, Role of government, social indicators, tar sands, US.
January 11th, 2015
The past 18 months have seen real wages increase in Canada. (Yes, I double-checked.) Indeed, real wages have gone through two distinct phases of growth since the financial crisis hit the global economy in 2007. This may be surprising as we have been accustomed to hearing about the stagnation of real wages and the â€œdecouplingâ€ […]
Today, Statistics Canada reported inflation of 1.1% for August, even lower than June and July. But even at this anemic level, inflation is eating up three-quarters of wage gains. The Labour Force Survey indicates that Canadaâ€™s average hourly wage rose by only 1.5% between August 2012 and August 2013. Subdued inflation and the weak job […]
Today, Statistics Canada reported an annual inflation rate of 1.3% for July. By comparison, it reports that the average hourly wage rose by 1.8% between July 2012 and July 2013. In other words, even anemic inflation is eating up nearly three-quarters of wage increases. On average, Canadian workers have eked out only a 0.5% improvement […]
Today, Statistics Canada reported an inflation rate of 1.2% for June, validating the Bank of Canadaâ€™s recent decision to keep interest rates low for the foreseeable future. The rationale to raise interest rates would be to curb inflation, which is already under control and well below the central bankâ€™s 2% target. But even at 1.2%, […]
Statistics Canada reported today that inflation collapsed to just 0.4% in April. The Bank of Canadaâ€™s core inflation rate, which excludes volatile items, fell to 1.1%. Continued low inflation does not provide a rationale to raise interest rates. Perhaps for that reason, Canadian monetary hawks have shifted their rationale for higher interest rates. In 2011, […]
1. Heâ€™s Number Two:Â Stephen Poloz was widely acknowledged in economic and political circles as the second-best choice for the top job at the Bank of Canada. So the surprise was not that he was chosen. The surprise was, Why Not Tiff Macklem? Will someone please find out and tell the rest of us? 2. […]
Posted by Armine Yalnizyan under Bank of Canada, Conservative government, economic growth, free markets, free trade, G-20, inflation, interest rates, international trade, macroeconomics, monetary policy, Role of government, stimulus, unemployment.
May 3rd, 2013
Here is my take from today’s Economy Lab in the Globe. To expand a bit on alternatives, my take is that the neo liberal turn at the end of the 1970s was one possible response to the stagflation crisis, which found mainstream Keynesian economics wanting. Left Keynesians such as Kalecki had long recognized that full […]
Mark Carney’s tenure as Governor of the Bank of Canada overlaps some challenging economy history. Appointed in early 2008 just as the US housing bubble was popping, Carney took the helm in time for a financial crisis that brought the global economy to its knees. We are still living that history in terms of a […]
Statistics Canada reported today that, for a third consecutive month, consumer prices declined and the inflation rate fell below 2%. In July, the inflation rate was 1.3% and the Bank of Canadaâ€™s core rate was 1.7%. Gasoline and natural gas prices, which have been lower this summer than last, dragged down the overall Consumer Price […]
Todayâ€™s Consumer Price Index provides further evidence of Saskatchewanâ€™s rising cost of living. Among the provinces, Saskatchewan is tied for the second-highest annual inflation rate: 2.0%. Consumer prices decreased in June from May in nine provinces (all except Alberta). But Saskatchewan was tied for the smallest monthly price decline: -0.3%. Compared to the rest of […]
Todayâ€™s report that the national inflation rate fell to 1.2% in May deflates calls for higher interest rates to reduce inflation. The central bankâ€™s core rate was 1.8%, also below the 2% target. The other argument for an interest-rate hike was to moderate mortgage lending and the housing market. However, the federal governmentâ€™s move to […]
Today, Statistics Canada reported an annual inflation rate of 2%, precisely in line with the Bank of Canadaâ€™s target. With inflation under control and renewed risks to the global economy, there is little rationale for the central bank to raise interest rates anytime soon. In fact, the Bank of Canada should now be more concerned […]
In the context of student protests over Quebec tuition fees, my friend Luan Ngo has just written a very informative blog post on Quebec’s fiscal situation. While I encourage readers to read his full post, I do want to use the present space to make mention of three important points he makes: -On a per […]
Posted by Nick Falvo under Bank of Canada, budgets, Conservative government, corporate income tax, debt, deficits, economic crisis, economic growth, economic literacy, economic models, economic thought, education, equalization, financial crisis, fiscal federalism, fiscal policy, heterodox economics, inflation, interest rates, macroeconomics, monetary policy, post-secondary education, progressive economic strategies, Quebec, social policy, student movement, user fees.
April 28th, 2012
Canadaâ€™s business press has recently been filled with speculation that the Bank of Canada may soon hike interest rates based on its somewhat more optimistic economic outlook. But todayâ€™s Consumer Price Index report indicates that there is no need to raise interest rates. Statistics Canada reported that both headline and core inflation fell to 1.9% […]
Statistics Canada reported today that consumer prices edged up by 0.1% in February on a seasonally-adjusted basis, bringing the annual inflation rate to 2.6% and the core inflation rate to 2.3%. These rates are within the Bank of Canadaâ€™s target range and should allow it to keep interest rates low, which would be appropriate given […]
Statistics Canada reported today that consumer prices jumped in January (by 0.4% or 0.5% seasonally-adjusted), offsetting the drop in December. As a result, the annual inflation rate is now 2.5% and the Bank of Canadaâ€™s core inflation rate is 2.1%. Monetary Policy Both measures are well within the central bankâ€™s target range, which should allow […]
The top story in the Globe and Mail todayÂ reports on something I warned about a year ago: Â Statistics Canada is making changes to the way it calculates the Consumer Price Index. At that time I suspected changes to calculations of the CPI would be introduced as part of the renewal of the inflation target with […]
Statistics Canada reported today that consumer prices decreased in December, lowering the annual inflation rate to 2.3%. The Bank of Canadaâ€™s core inflation rate declined to 1.9%. Tame inflation leaves room to lower interest rates. If unemployment continues to rise, the Bank of Canada should reduce interest rates to boost the economy and create jobs. […]
The December issue of the quarterly Economic Climate for Bargaining publication I produce is now on-line. Â This issue has a number of pieces on issues of inequality, including: Rising inequality is hurting our economy Labour rights, unions and the 99% Canadian economy bleeding jobs; public sector cuts to intensify Recession and cuts hit Aboriginal and […]
Statistics Canada reported today that the annual inflation rate remained 2.9% and the Bank of Canadaâ€™s core rate remained 2.1% in November. The monthly increase in consumer prices slowed to 0.1% in November from 0.3% in October. The monthly increase in core prices slowed to 0.1% in November from 0.2% in October. Inflation remains modest […]
Many long-held tenets of neoclassical orthodoxy have fallen by the wayside in the past 3 years, but perhaps one of the biggest dominos that is at least teetering precariously (if not fully tipped over) is the consensus that inflation targeting should be the exclusive focus of monetary policy.
So, the 2% inflation target has been renewed as it now stands. (Take that, House of Commons Finance Committee, which is holding hearings on the issue next week.) The background report from the Bank of Canada is prettyÂ self-congratulatory, though it does somewhat revise the current regime to underline the point that monetary policy also […]
In an earlier post, Marc Lee mentioned in passing the German hyperinflation episode of the 1920s. Itâ€™s remarkable that this event still holds such sway over the popular imagination despite other more recent instances of hyperinflation. Certainly, the imagery is powerful: German citizens pushing wheelbarrows full of worthless paper money around for everyday purchases, banknotes […]
The December 2010 issue of the quarterly Economic Climate for Bargaining publication thatÂ I produce is now on CUPE’s website in both English and French. In each issue I summarize developments and trends for the economy, labour markets, inflation and wages, and also include shortÂ piecesÂ of 1-2 pages on related topical issues.Â In this issue, the focus […]
Here’s a new take on bringing economic theory to the masses — a rap battle between Keynes and Hayek. What’s amazing about it is the amount of solid (if not plain nerdy) content this video packs into such a short time. It’s fun to watch for sure (very high production values), but you get that […]
Posted by Iglika Ivanova under economic crisis, economic growth, economic literacy, economic thought, fiscal policy, free markets, history of economic thought, industrial policy, inflation, interest rates, investment, labour adjustment, labour market, macroeconomics, media, monetary policy, prices, progressive economic strategies, public sector procurement, recession, Role of government, stimulus, unemployment, wages.
October 12th, 2010
Todayâ€™s Consumer Price Index release told a tale of two inflations. The national rate decreased from 1.8% to 1.7% while Ontarioâ€™s inflation rate remained at 2.9%, the highest in Canada. Monetary Policy Of course, monetary policy should reflect the whole country. The national inflation rate decreasing to 1.7% in August begs the question of why […]