Monetary Policy & Banking

A Primer on Modern Monetary Theory

— May 18, 2021

A Primer on Modern Monetary Theory is a new study that finds that if the Bank of Canada continues to finance government debt by printing money without a clear commitment to repayment—also known as Modern Monetary Theory (MMT)—it would pose enormous risks to the Canadian economy. Where MMT has been tried in the past, it has resulted in inflation, sometimes even hyper-inflation, with devastating consequences for domestic economies.

Reforming BC Auto Insurance to Benefit Consumers

— Oct 29, 2020

Reforming BC Auto Insurance to Benefit Consumers finds that the Government of British Columbia’s ICBC reforms haven’t gone far enough and maintain ICBC’s monopoly on basic automobile insurance—which keeps rates higher than they would be in a more open insurance market.

Recent Monetary Policy & Banking Commentaries and Blog Posts

Transitory or not, here comes inflation

Livio Di Matteo

In August, the price of meat increased by 6.9 per cent.

Governments and central bankers may have paved way for severe pain in near future

Livio Di Matteo

Governments around the world—including Canada—have injected an enormous amount of liquidity into the financial system.

Learn from ‘Nixon shock’—control central bankers, limit ability to debase currency

Robert P. Murphy

Appeared in National Newswatch, August 13, 2021

President Nixon ended the convertibility of the U.S. dollar into gold.

Modern Monetary Theory remains a dangerous policy prescription in Canada and beyond

Steven Globerman

Appeared in the Hub, May 26, 2021

Many economists warn about ballooning budget deficits and the potential for higher interest rates in the future.

Canada’s fiscal situation near crisis levels

Livio Di Matteo

Federal net debt for 2020-21 will likely exceed $1.1 trillion.