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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 […]
Elites and the talking heads in the media are arguing about how to respond to Canadaâ€™s soured economic outlook. Who should try to boost the economy, the federal government via fiscal stimulus or the Bank of Canada via monetary policy? But while elites argue amongst themselves, the overriding context is a transfer and concentration of […]
The central banker who talked too much Louis-Philippe Rochon Associate Professor of economics, Laurentian University Co-Editor, Review of Keynesian Economics On Tuesday, Governor of the Bank of Canada, Stephen Poloz testified in Ottawa in front of the House of Commons Standing Committee on Finance. He had a lot to say about the state of […]
This is a guest blog post from Louis-Philippe Rochon. Follow him on Twitter @Lprochon. — What a tumultuous few weeks we witnessed in Greece. Though the victory of Syriza was ill-received in particular in Germany and the European Central Bank, it was nonetheless a resounding victory for democracy. This victory may now spill into other […]
Posted by Nick Falvo under Austerity, debt, democracy, economic crisis, economic growth, Europe, exchange rates, Greece, monetary policy, progressive economic strategies.
February 10th, 2015
This guest blog post has been written by Louis-Philippe Rochon. You can follow him on Twitter @Lprochon – Harperâ€™s recent incarnation as an anti-terrorist crusader has caught many Canadians by surprise. Harper is spending considerable political energy beating the drums of war against terrorists, and introducing a far-reaching, and much condemned, bill aimed at restricting […]
Posted by Nick Falvo under Bank of Canada, banks, China, Conservative government, economic crisis, economic growth, employment, exchange rates, financial markets, GDP, global crisis, interest rates, international trade, labour market, macroeconomics, manufacturing, monetary policy, recession, Role of government, unemployment, US.
February 6th, 2015
In a recent CBC blog post, Louis-Philippe Rochon assesses the current state of the Canadian economy. The link to the blog post is here. Follow him on Twitter @Lprochon.
Posted by Nick Falvo under Bank of Canada, budgets, China, Conservative government, deficits, economic crisis, economic growth, employment, exchange rates, federal budget, fiscal policy, global crisis, household debt, IMF, interest rates, labour market, macroeconomics, manufacturing, monetary policy, recession, stimulus, unemployment.
February 5th, 2015
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 Rochonâ€”who now blogs for CBCâ€”argues that almost nobody had been expecting the Bank of Canada’s recent decision to lower the rate of interest. His post can be found here. Follow him on Twitter @Lprochon.
The Bank of Canada surprised most analysts this week when it decided to cut rates by 25 basis points. The move comes after the price of oil has tumbled below $50 / barrel, oil producers announced huge cuts to business investment for 2015, Target announced a mass layoff of 17,600 workers in Canada, and the […]
Posted by Angella MacEwen under Bank of Canada, budgets, Conservative government, Dutch disease, employment, interest rates, labour market, macroeconomics, manufacturing, monetary policy.
January 22nd, 2015
Unless you’ve been hiding under a rock somewhere, you’re probably well aware that the price of oil has fallen dramatically, to less than $50 / barrel. What this means for Canada’s economic output & labour markets is not yet clear. But Stephen Poloz at the Bank of Canada hasÂ said that he expects the effect to […]
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
Much has been made about Stephen Poloz’s decision to abandon ‘forward guidance’ in Bank of Canada rate setting announcements for the time being. Critics bemoan the loss of direction from the Bank. But Poloz’s comments yesterday were chock full of guidance on how the Bank sees Canada’s economic situation. Having been disappointed by the failure […]
I have written a couple of pieces for Economy Lab in the Globe and Mail recently on the issue of secular stagnation. (Links below) The term was coined by the pioneering American Keynesian Alvin Hansen who argued that the US economy of the late 1930s faced a long period of stagnation due to a chronic, […]
Arun here…breaking radio silence to share with you a thought-provoking piece by Larry Kazdan, a graduate of York University in sociology and history, and currently a Council Member with the World Federalist Movement-Canada, an organization that monitors developments at the United Nations and advocates for more effective global governance. Our friend and fellow blogger Keith […]
Today, I had the following commentary posted on The Globe and Mailâ€™s Economy Lab: The loonie is overvalued and the Bank of Canada has room to act On Tuesday, Christopher Ragan characterized the notion of an overvalued Canadian dollar as a â€œseductive mythâ€ that the Bank of Canada should not act to address. I have […]
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
In a very long and fascinating speech which has been amplified by Martin Wolf in the FT, Lord Adair Turner seeks to break the taboo on discussion of the potential ability of central banks to monetize fiscal deficits. His argument boils down to a political economic one … Some monetization might be useful in certain […]
The Board of Directors of the Bank of Canada have retained Odgers Berndtson to seek a new Governor, and have placed an ad in the Globe and Mail, the Economist and La Presse. The wording of the advertisement is questionable. First, it states that â€œthe Bank of Canada is the pre-eminent macro-economic institution in Canada.â€ […]
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 […]
Yesterday, Mike Moffatt took to The Globe and Mailâ€™s â€œEconomy Labâ€ in response to my suggestion that the Bank of Canada should moderate the exchange rate. (Perhaps his motive for encouraging me to seek the Saskatchewan NDP leadership was to get me as far as possible from the levers of monetary policy.) 🙂 My rebuttal […]
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 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 […]
There is a very interesting interview with PEF’s own Marc Lavoie here on the Naked Capitalism site on his new book. Monetary Economics was co-authored by Marc with the late Wynne Godley. (Make sure to start by linking back to Part 1.)
Readers of this blog will have hopefully read my report “The big banks big secret”Â which examines the $114 billion that Canada’s banks received during the 2008-09 financial crisis. Â Its major finding was that at some point three of Canada’s fiveÂ big banks had received support worth more than their market capitalization, or the value of all […]
Posted by David Macdonald under Bank of Canada, banks, democracy, economic crisis, financial crisis, financial markets, financial regulation, fiscal policy, global crisis, monetary policy.
June 8th, 2012
Canadaâ€™s economy grew by half a percent in the first quarter of 2012, staying on pace for unimpressive annual growth of two percent. The good news is that business investment was strong, at least on a seasonally-adjusted basis. (As usually happens in the first quarter, the actual dollar value of business investment decreased.) Unfortunately, the […]
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
The most interesting comments from Bank of Canada Governor Mark Carney last week, in releasing the Bank’s semi-annual Monetary Policy Report, dealt with the relationship between the price of oil and the Canadian currency.Â The Globe and Mail reported Carney as publicly questioning why currency traders automatically presume such a direct link between the loonie […]
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% […]