Under the headline “IMF Admonishes Canada,” the Financial Post reported on Wednesday: The IMF added its voice yesterday to the growing chorus of observers urging Canada to undertake a 21st-century overhaul of its financial system, saying it should create a single securities regulator, open its banking system to foreign competition and mergers and tear down interprovincial trade barriers. . . . […]
Read moreRelatively high inflation in Alberta seems to be the only justification for raising Canadian interest rates. In this context, it is tremendously significant that the Government of Alberta itself opposes increasing rates. Of course, higher interest rates imply a higher Canadian dollar. Alberta sells oil and gas, the prices of which are denominated in US dollars. As the Canadian dollar […]
Read moreMore fascinating stuff from that CIBC report follows: While many of the big names in the mining and metal processing industry have been spoken for, there are even larger capital inflows potentially still ahead in the energy sector. Thanks to the oil sands, and a still laissez-faire attitude towards ownership of those resources, Canada represents anywhere from 50-60% of the […]
Read moreThe following excerpt is from the much-reported study released by CIBC last week: The Bank of Canada, eying an economy operating above its non-inflationary speed limit, will welcome the dampening influence of an even stronger currency on both economic growth and inflation. A couple hundred thousand additional factory job losses, while far from derailing domestic economic growth, might be a […]
Read moreThe big news story (Globe article here and political analysis here) of the day is the proposed merger between Telus and BCE (aka Bell), and what the government should do about it. Below are a few notes to add some context, and an alternative, to merger mania. First, was it not just a year ago that both BCE and Telus […]
Read moreElizabeth May and the Green Party can take credit for putting forward a serious climate change plan, based on a $50 per tonne carbon tax, with some revenues from this directed to a reduction of other taxes. http://www.greenparty.ca/en/releases/06.06.2007?origin=redirect Today, they placed in the public realm a study by Marc Jaccard suggesting minimal economic disruption from such a strategy- which I […]
Read moreThe “core inflation” rate’s jump to 2.5% for April 2007 (released in May 2007) was great cause for concern among many economic pundits and seemed to prompt the Bank of Canada’s announcement that it intends to raise interest rates. Of course, 2.5% must be regarded as quite moderate inflation and falls well within the Bank’s own 1%-3% range. However, this […]
Read moreThe 2007 OECD Employment Outlook incorporates a study (Chapter 3) finding that higher minimum wages raise productivity. In fact, a sophisticated quantitiative study finds that an increase of 10 percentage points in the ratio of the minimum wage to the median hourly wage raises the level of labour productivity in the long-run by between 1.7 and 2.0 percentage points. One possible explanatation cited […]
Read moreThe annual OECD Employment Outlook – the product of the Directorate for Employment. Labour and Social Affairs (DELSA) can usually be relied upon to provide a well-reasoned counter point to the extreme neo liberalism of the Economics Directorate (ECO) — and the 2007 issue is no exception.) For a summary and details on how to access the report (full document […]
Read moreAvi Lewis, son of Stephen, hubby of Naomi, has a new show on CBC Newsworld. It is now halfway through a four-week run, with 22 minutes of content Monday to Thursdays (at 7:30 ET and 11:30 PT, to be precise). It is called On the Map, which is a great title except for the fact that it reminds me of […]
Read moreJust in from Paris, some fascinating quotables from the OECD: Governments must do more to help workers adapt to new global economy, says OECD Rather than seeing globalisation as a threat, OECD governments should focus on improving labour regulations and social protection systems to help people adapt to changing job markets. That is the message from the 2007 edition of […]
Read moreThe Globe and Mail ran an editorial last Friday (now subscriber only content)Â Their summary reads:Â “We have grown used to the notion that our governments can run up budget surpluses. If only they could show some vision for putting the money to work.Statistics Canada reported yesterday that all levels of Canadian government posted a combined surplus of $29-billion […]
Read moreRelative to inflation, Albertans are being paid less per hour than they were a year ago. Today, Statistics Canada released Consumer Price Index figures for May 2007. Comparing these figures with the latest Labour Force Survey reveals that Canadian wages grew only 0.8% more than Canadian prices from May 2006 through May 2007. As always, the national figure masks significant […]
Read moreIn New Left Review, Clive Hamilton writes a review and critique of George Monbiot’s Heat. There are a number of interesting passages. First, he gives this doozy as an indicator of how grave the issue is in the USA: In recent years wealthy Texans have discovered the joys of sitting in front of a log fire. As it is usually […]
Read moreAn article in the Globe wonders what comes next for a Harper government that seems stuck: unable to move up in the polls despite delivering on its most populist proposals, but unable to deliver the goods for its core supporters because of, well, the polls. And interestingly, its best moves have come by doing the right thing and breaking its […]
Read moreAround lunchtime I got a knock on the door, and a good-looking young woman was there to make a sales call for Univeral Gas. She was seeking to convert my natural gas supply under a newly deregulated market. I asked her if she would leave behind materials so that I could think about it. No dice. She wanted me to […]
Read moreThis post was inspired by my wife, a non-economist (thankfully) who asked me the other day for my opinion on the endless equalization debate. My answer was simple: follow the politics. As every insider knows, the excommunication of Bill Casey, an MP from Nova Scotia, is only the tip of the iceberg of discontent over the Conservative government’s proposed equalization […]
Read moreAs Andrew Jackson points out, there are some interesting musings in the US about progressive taxation. In a recent post, Mark Thoma cites four good reasons for progressive taxation: Personally, I’m not much on redistribution simply to make outcomes more equal. But there are (at least) three reasons to depart from this. First, when there is change such that makes […]
Read moreThe Globe’s story, Canada Post NAFTA win sets precedent, for UPS vs the government of Canada with respect to Canada Post, is a bit misleading. It comes across as “see, those whiners about investor-state were wrong all along”: Chapter 11 was controversial from NAFTA’s inception because critics charged it would allow foreign investors to challenge, and alter, government policies and […]
Read moreIn the Globe and Mail it is reported: A flurry of increases in the past month has sent Canadian mortgage rates to their highest level in more than five years, and consumers shouldn’t expect a return to the low interest rates they enjoyed in the first half of the decade. The story quotes Benjamin Tal of CIBC World Markets, commenting […]
Read moreHopefully, the radio interview that I just did with Saskatoon’s News Talk 650 will help to counteract Randy Burton’s column in today’s StarPhoenix. Burton claims: There is one overarching reason why we should be cautious about accepting the predictions of doom that await Saskatchewan if it joins a trade agreement with Alberta and B.C. The people who tell us less […]
Read morehttp://www1.hamiltonproject.org/views/papers/furman/200706summers_bordoff.htm At the Canadian Economics Association, I presented a paper (to be published by the CCPA Inequality Project this Fall) on the case for more progressive taxation of income. In a nutshell, my argument was that the tax side of the tax/transfer system must be relied on more to counter growing income inequality, since only the tax side can close […]
Read moreI’m not a big fan of business journalism. For the most part, it’s a lazy, sycophantic, uninspired, biased, occasionally self-interested (in a conflict-of-interest sense) and worse yet, boring business. I should know, I was once part of the fold. In my experience, at least half of financial journalists are in it for the food (gotta love annual report/annual meeting season […]
Read moreAfter a week of public hearings in Regina, the Saskatchewan Legislative Assembly’s Standing Committee on the Economy has moved to Saskatoon. Fortunately, CUPE was able to import Steven Shrybman for some expert testimony. Luckily, he wasn’t caught up in any “inter-provincial barriers” on his way from Ottawa. Some of his testimony was reported in today’s Leader-Post: Ottawa-based trade lawyer Steven […]
Read moreFrom his rabble.ca column: In a judgment rendered June 8, the Supreme Court of Canada has reversed itself and recognized that freedom of association includes the right to collective bargaining. by Duncan Cameron June 13, 2007 Fundamental labour rights, pursued historically, and recognized under international conventions, must be respected in Canada, according to the highest court in the land. In […]
Read morehttp://business.guardian.co.uk/story/0,,2100771,00.html Interesting piece on the fortunes being made at Blackstone as the private equity kings take themselves public. CEO Schwarzman made $398 Million last year, and will trouser $449 Million when they go public on top of his continued stake in the business, valued at a staggering $7,700 Million.
Read moreRelentlessly Progressive Economics (old site at progecon.wordpress.com) was suspended earlier today by WordPress due to a complaint about copyright violation. We are working to cleanse our posts so that they are within the definition of fair use (though this is contested terrain). Wikipedia’s article on fair use of copyrighted material is here.
Read morehttp://www.cdhowe.org/pdf/ebrief_46.pdf
Read moreBecause it looks like a simple rebuke of the zealous anti-union tactics of BC’s Campbell administration, observers Back East may have missed this significant ruling by the Supreme Court on Friday. Below is the story from Saturday’s Vancouver Sun, and a commentary from a columnist in today’s Sun. Interestingly, the term “judicial activism” crops up fairly early in the story, […]
Read moreThe following letter is printed in today’s Globe and Mail: Re Harper signals shift from Africa to Americas (June 8), Announcements by Prime Minister Stephen Harper and International Trade Minister David Emerson that Canada intends to negotiate a free-trade deal with Colombia can only be described as chutzpah. Consider: More union leaders are killed in Colombia than in all of […]
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