Voodoo economics: Busting some popular monetary myths: Globe and Mail Op-Ed
Published in the Globe and Mail on September 23, 2014
By Christopher Ragan
Christopher Ragan is an associate professor of economics at McGill University and a Research Fellow at the C.D. Howe Institute.
Last week my friend sent me a link to a short video ranting about our monetary system. I immediately recognized it as another in a large collection of videos I have seen, many of which are sent to me by students pondering the validity of the central messages – which appear quite at odds with the things I say in class.
These videos are filled with so many misconceptions that anyone studying from them would fail an exam in any respectable economics course. Two big monetary myths stand out from the…
Canada’s Limited Solutions To Its Slow-growth Recovery: Globe And Mail Op-ed
Published in the Globe and Mail on August 12, 2014
By Christopher Ragan
Christopher Ragan is an associate professor of economics at McGill University and a Research Fellow at the C.D. Howe Institute. His latest publication is What Now? Addressing the Burden of Canada’s Slow-Growth Recovery.
Canada is mired in a slow-growth recovery because the United States and Europe are still repairing their economies in the wake of enormous financial crises. As I argue in a recently released paper from the C.D. Howe Institute, as long as the global economy remains fragile, Canada will not return to growth rates anywhere near our pre-crisis standard of 3 per cent.
Much research…
User Discretion Advised: Fiscal Consolidation and the Recovery
Ontario should not delay fiscal consolidation, while Ottawa should take a more gradual approach than planned, according to a report from the C.D. Howe Institute. In “User Discretion Advised: Fiscal Consolidation and the Recovery,” author William Scarth calls on the Ontario provincial government to address its long-term sustainability challenges before it embarks on any major […] Business uncertainty a roadblock on the path to economic recovery: Globe and Mail Op-Ed
Published in the Globe and Mail on July 1, 2014
By Christopher Ragan
Christopher Ragan is an associate professor of economics at McGill University and a research fellow at the C.D. Howe Institute.
The Canadian economy is still mired in a tepid recovery, with real output growing at a rate well below what we saw before the recession. Canadian investment and exports are lagging far below normal levels, partly because the U.S. economy, although showing intermittent signs of life, continues to face its own recovery challenges. One crucial factor affecting both economies is widespread economic uncertainty.
Uncertainty about the future path of the…
Monetary Policy Council Urges Bank Of Canada To Hold Overnight Rate At 1.00 Percent At Next Setting; Looks For 1.25 By April 2015
April 10, 2014 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on April 16, 2014.…The Ill Wind that Blows from Europe: Implications for Canada’s Economy
The continuing possibility that things could take a turn for the worse in the eurozone ought to be a concern for Canadian policymakers, according to a report released today by the C.D. Howe Institute. In “The Ill Wind that Blows from Europe: Implications for Canada’s Economy,” author Pierre Siklos explores the linkages between the Canadian […] C.D. Howe Institute’s Monetary Policy Council Urges Bank Of Canada To Hold Overnight Rate At 1.00 Percent
February 27, 2014 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on March 5, 2014…A big-picture budget with some troubling details: Globe & Mail Op-Ed
Published in the Globe & Mail on February 12, 2014
By Alexandre Laurin
An understated highlight of the federal budget was that, for the first time in five years, Finance Minister Jim Flaherty has a healthy baseline. His cumulative $45-billion surplus projected over the next five fiscal years would be the envy of most past federal finance ministers, not to mention Mr. Flaherty’s provincial counterparts. That is a situation worth cultivating – the minister’s prudent approach toward that surplus deserves applause.
The budget contained no bold and costly initiatives. It commits $5.7-billion of new spending over five years on small, targeted programs. It put aside $3-billion per year for prudence. And it improved the…
We Have A Deal With Europe. Let’s Not Blow It: Globe And Mail Op-ed
Published in the Globe and Mail on October 18, 2013
By Lawrence Herman
We finally have a deal with Europe, called a comprehensive economic and trade agreement (CETA).
It took longer than expected and there was a real sense of drift, many thinking that the effort wasn’t going anywhere. But persistence and goodwill seems to have paid off.
The only problem is, we don’t have the text yet. All we have is the outline of an agreement in principle. A lot of what’s being put out by the Prime Minister’s Office has to be accepted on faith.
Judging from the rosy press conference given by Prime Minister Stephen Harper and EU President Jose Barroso earlier Friday, however, the hard negotiations are over and it’…
Housing moves: Canada, U.S. contemplate changes to the way we finance housing: Financial Post Op-Ed
Published in the Financial Post on October 2, 2013
By Finn Poschmann
Last Wednesday Scotiabank sold the first Canadian bonds backed by consumer lines of credit in 12 years. The highly rated issue sold at market, according to a Bloomberg report, at an impressive 78 basis points over similar-term Canadian government bonds.
Critics may worry that such events signal a continuing explosion in household debt and a return of the boom and bust “wild West,” U.S.-style marketplace.
But there is another way to see it. The bonds’ risks will be borne by the issuer and investors, not unwilling and unknowing taxpayers, who back most of the mortgage risk in Canadian and U.S. housing markets.
And change is afoot in the…
Predicting Recessions in Real-Time: Mining Google Trends and Electronic Payments Data for Clues
Predicting recessions in real-time could be made possible by mining vast new sources of electronic data, according to a report released today by the C.D. Howe Institute. In “Predicting Recessions in Real-Time: Mining Google Trends and Electronic Payments Data for Clues,” author Greg Tkacz, pronounced “katch”, considers whether Google searches and the growth of electronic […] Who is Still Standing in Line? Addressing a Mismatch of Skills and Jobs in the Canadian Labour Market
While the Canadian labour market has shown great resilience since the last recession and is nearly back to normal, important weaknesses remain for youth and the long-term unemployed, according to a report released today by the C.D. Howe Institute. In “Who is Still Standing in Line? Addressing a Mismatch of Skills and Jobs in the […]