Monetary Policy & Banking

The Costs of Slow Economic Growth: Collected Essays

— Oct 10, 2019

The Costs of Slow Economic Growth finds that from 2011 to 2018, Canada experienced an annual economic growth rate of 2.17 per cent. But that an annual rate of 3 per cent would spur an approximately $45,000 increase in Canada’s per-person income after 20 years.

Understanding Why Basic Auto Insurance Rates in BC Are So High

— Nov 15, 2018

Understanding Why Basic Auto Insurance Rates in BC Are So High finds that drivers in British Columbia pay higher rates, in part, because ICBC doesn’t fully account for age when setting rates, so older, safer drivers pay more to subsidize younger, riskier drivers, who pay less than they otherwise would. Also, ICBC uses driver premiums to pay for non-insurance related costs—such as driver testing, driver and vehicle licensing and fine collection—which also drive up costs.

Recent Monetary Policy & Banking Commentaries and Blog Posts

We do not need a wealth tax

Philip Cross

Appeared in the Financial Post, October 22, 2020

At the end of 2019, household net worth in Canada stood at $11,876 billion compared to $622 billion for corporations.

Ottawa reducing value of money and spending billions

Fred McMahon

Appeared in the Edmonton Sun, October 7, 2020

Inflation peaked at 14 per cent in Canada and the U.S.

On the Passing of Harvard economist Alberto Alesina

Niels Veldhuis, Jake Fuss, Alex Whalen

Alesina specifically noted the experience of Canada in the mid-1990s.

Modern Monetary Theory, Part 4: MMT and quantitative easing

Steven Globerman

Since the 2008-2009 financial crisis, central banks in Canada and elsewhere have pursued quantitative easing.

Modern Monetary Theory, Part 3: MMT and inflation

Steven Globerman

Divergences between expected inflation and actual inflation contribute to economic inefficiencies that harm economic growth.

Modern Monetary Theory, Part 2: Will MMT hold down taxes?

Steven Globerman

Default risk and exchange-rate risk increase for foreign lenders as they increase their holdings of any government’s debt.

An Affront to Democracy: New legislation proposed giving Liberals unprecedented powers

Niels Veldhuis, Jason Clemens

Canada’s economy was sputtering prior to the COVID-19 crisis.

Modern Monetary Theory, Part 1: What is it and why is it gaining currency in these volatile times?

Steven Globerman

Providing income support to workers and businesses involves large increases in government expenditures.

Coronavirus shockwaves felt around the world economy

Livio Di Matteo

From 1973 to 1996, Canada's average annual unemployment rate was 8.9 per cent.