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.

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.

Recent Monetary Policy & Banking Commentaries and Blog Posts

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.

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.