The Bank of Canada should announce a target interest rate of 0% on Tuesday. This move would match the action taken by the US Federal Reserve a month ago. Recent experience suggests that the chartered banks would not pass along the entire cut. But such a dramatic announcement by the Bank of Canada would place strong pressure on the chartered banks to noticeably […]
Read moreA well-timed release from StatsCan today that speaks for itself in terms of relevance to the current Budget debate: http://www.statcan.gc.ca/daily-quotidien/090114/dq090114a-eng.htm “Between 1962 and 2006, roughly one-half of the total growth in multifactor productivity in the private sector was the result of growth in public infrastructure. Public capital (the nation’s roads, bridges, sewer systems and water treatment systems) constitutes a vital input for […]
Read moreWe are now into full blown Budget consultation mode, with MPs of all parties going through a bit more than the usual pretence of listening before the actual Budget is finally put to bed by the government a few days hence. For once, even the Conservative inner circle seem a bit unsure of where to go. Below the closed (charmed) […]
Read moreSupporters of various American wars have sometimes proclaimed, “Freedom isn’t free.” This idiom could also be applied to Tax-Free Savings Accounts, which entail a cost in terms of lost federal and provincial revenues. When Budget 2008 unveiled TFSAs, several writers on this blog pointed out that their initially low fiscal cost would grow exponentially over time. At least one high-profile TFSA […]
Read moreHere is a note to Relentlessly Progressive Economics readers from Dr. Luis T. Gutierrez: The January 2009 issue of the E-Journal of “Solidarity, Sustainability, and Nonviolence” has been posted: The Sustainable Development Paradox As part of a series of articles on “dimensions of sustainable development,” the January 2009 issue shows the impossibility of integrating the social, economic, and political dimensions of sustainable development unless […]
Read moreDeclan picks up on Stephen’s suggestion that economists were too diffident to raise concerns about the real estate bubble: How to square the group of economists in the front pages of the paper offering a series of right wing prescriptions supported by neither fact nor theory with the economist unwilling to point out a housing bubble because it doesn’t fit […]
Read moreAnother dismal jobs report for December, with 34,000 more jobs gone (71,000Â full-time losses) and the unemployment rate jumping a third of a point in a single month, has got everyone now wondering:Â How high will the unemployment rate go in this recession? The “consensus” view of the mainstream economics world is something like this: unemployment will climb to perhaps 8% […]
Read moreI have generally been underwhelmed by media coverage of AbitibiBowater’s prospective NAFTA challenge of Newfoundland and Labrador’s decision to reclaim natural resources that the company previously used to operate paper mills in the province. I watched a panel discussion on Mike Duffy Live (before his Senate appointment) that focussed entirely on NAFTA’s nondiscrimination provisions. But there is no suggestion that […]
Read moreEzra Klein at American Prospect has already commented on some footage that I just saw on CNN. Paul Krugman marshalled his critique of Obama’s stimulus plan from his blog onto the op-ed page of today’s New York Times. A front-page story in the same newspaper suggests that Democratic legislators have been reading Krugman. Obama responded by throwing down the gauntlet for […]
Read moreGenerally in recent months and particularly in November, there were pronounced job losses in the province of Ontario and the manufacturing sector. In December, the Ontario and manufacturing numbers did not change much. But job losses spread to other provinces and the construction sector. In effect, the only remaining bright spots in Canada’s labour market have been extinguished. Even adjusting […]
Read moreYesterday, the chief economists of the chartered banks called on the federal government to permanently cut taxes now and balance the budget after the economic crisis by cutting spending. An obvious but unstated implication is a smaller government when the economy recovers. While this outcome would undoubtedly suit the ideological preferences of bank economists, it would hardly be a sensible response […]
Read moreObama’s selection of pro-NAFTA politicians as his Chief of Staff, Commerce Secretary, and US Trade Representative worried those of us who hope that he is serious about renegotiating NAFTA. This afternoon’s news that Bill Richardson has withdrawn reopens the possibility of appointing a NAFTA critic to the Commerce portfolio. Anyway, hope springs eternal.
Read moreI always enjoy Gwynne Dyer’s commentary on world affairs, but do not read nearly enough of it. Very few Canadian newspapers print columns by this Canadian-born journalist. Exceptions include Dyer’s hometown newspaper, the St. John’s Telegram, as well as The Hamilton Spectator and Guelph Mercury. Dyer’s lengthy year-end column combines a review of events in most corners of the world with […]
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