Cash in the bank: Cutting through the noise on digital currencies – Globe and Mail Op-Ed
In the debate over whether the Bank of Canada should issue a central bank digital currency, it is tempting to take a black-and-white perspective. But, the truth is subtler. There exists a spectrum of CBDC design possibilities and a proper evaluation of the different options is necessary.
As it turns out, a token-based CBDC – one that mimics cash quite closely – would respect privacy, create an environment for new forms of private money to grow and wouldn’t disrupt the functioning and stability of our financial system.
To understand why this option is optimal, it is first important to distinguish between public and private money. Public money consists of the physical notes and coins in circulation – the cash in your wallet…
William B.P. Robson on Power & Politics – Poilievre Targets BoC Chief
Conservative Leadership candidate Pierre Poilievre is facing scrutiny over his claims that he would fire the Bank of Canada governor should he become Prime Minister. William B.P. Robson joins Power & Politics to discuss.
William White – The Weaponization of Finance and the Future of the International Monetary System
From: William White To: International Currency Watchers Date: May 10, 2021 Re: The Weaponization of Finance and the Future of the International Monetary System The recent use of financial sanctions by the US, against the central bank of Russia, initially raised fears that other countries might try to protect themselves by reducing sharply their reserve holdings of US dollars. […] Put to the Test: Ranking Canada’s Universities on Their Climate Change and Endowment Activities
Canadian universities are world renowned for their leadership in research and education. Many Canadian universities undertake research efforts and teach students about the risks and opportunities associated with climate change. Most have also embraced a transition to lower the carbon footprint across their operations. However, universities could do more to align their investment philosophies with […] Don Drummond – The 2022 Federal Budget Measures Misaligned with Needs
From: Don Drummond To: Finance Minister Chrystia Freeland Date: April 20, 2022 Re: The 2022 Federal Budget Measures Misaligned with Needs A common reaction to the 2022 federal budget is “not as bad as expected.” What kind of evaluation is this? Faint praise simply because fears of massive new spending did not materialize? But that fear was stoked by […] The Bank of Canada’s rate hike: You can’t fight inflation on the QT – Financial Post Op-Ed
With inflation on the rise, the Bank of Canada kicked its tightening cycle into high gear Wednesday by announcing a 50-basis-point increase in its target for the overnight rate — the first non-25-basis-point hike in over 20 years. It also modified its stance concerning its over-sized holdings of Government of Canada bonds, which swelled its balance sheet during so-called Quantitative Easing (QE). Those days are over: it will now initiate Quantitative Tightening, or QT, by not replacing bonds on its balance sheet as they mature, thus reducing its bond holdings over time.
Some might be disappointed the bank didn’t go further on QT by announcing it would actually start selling its holdings of government bonds. Not to worry.…
Zelmer, Kronick – Cryptocurrencies No Defence Against Inflation
From: Mark Zelmer and Jeremy M. Kronick To: Canadian Crypto Watchers Date: April 14, 2022 Re: Cryptocurrencies No Defence Against Inflation People have many buoyant expectations of cryptocurrencies as they look for ways to conduct their financial affairs outside the traditional financial system. They hope that, as crypto and its supporting blockchain technology mature, there will eventually be no […] Can cryptocurrency protect you from inflation? – Globe and Mail Op-Ed
People have many happy expectations of cryptocurrencies as they look for ways to conduct their financial affairs outside the traditional financial system. They hope that, as crypto and its supporting blockchain technology mature, there will eventually be no delays in settling their transactions, cheaper cross-border transactions and no pesky fees on bank accounts, among other advantages.
Many also imagine that crypto assets can protect them from rising inflation. That, however, is one benefit crypto assets do not offer.
Crypto assets such as bitcoin and ethereum and their decentralized blockchain technology offer the promise that, at some point in the future, it may be possible to price goods and services and have one’s…
Alexandre Laurin – Pension-Related Tax Rule Changes for Budget 2022
To: Finance Minister Chrystia Freeland From: Alexandre Laurin Date: April 5, 2022 Re: Pension-Related Tax Rule Changes for Budget 2022 Retirees and workers nearing retirement will be looking to tax-rule changes to improve retirement security in your budget on Thursday. Policy attention to the decumulation phase of retirement savings can improve Canadians’ retirement and tax laws and regulations are […] Benjamin Dachis – Supply Constraints Drive Housing Prices Spikes
From: Benjamin Dachis To: Steve Clark, Ontario Minister of Municipal Affairs and Housing Date: April 1, 2022 Re: Supply Constraints Drive Housing Prices Spikes This week’s announcement from the Ontario government of their planned actions on housing shows more is still needed to truly solve the housing cost crisis. And the Union of British Columbia […] Time for a Tune-up: Reforms to Private-Sector Auto Insurance could Lower Costs and Add Value for Consumers
Auto insurance premiums in Canada amount to about $27 billion per year. For most Canadians, auto insurance represents a significant yearly expense. Provincial and territorial governments control auto insurance, which is mandatory across Canada. Some provinces deliver the insurance themselves through a government agency. Others outsource delivery to private-sector insurers. A recent C.D. Howe Institute […] Barry Gros – We Need to Align Regulation and Management of Target-Benefit Pension Plans
From: Barry Gros To: Canada’s Pension Regulators Date: March 23, 2022 Re: We Need to Align Regulation and Management of Target-Benefit Pension Plans How should Canada regulate a target payment that is not guaranteed? This question is seldom asked, let alone answered, when it comes to setting standards for regulating target-benefit pension plans (TBPs.) Managing risk under target-benefit plans […]