The importance of services to Canada's economy is often lost in the discussion of how Canada can take advantage of trade agreements such as the Trans-Pacific Partnership. In this Commentary, we look to close this gap with respect to the vital financial services sector. In order to determine the...

A new business cycle measurement developed by a C.D. Howe analyst provides further evidence that there was no recession in 2015, according to a new Institute report. In “Taking the Economic Pulse: An Improved Tool to Help Track Economic Cycles in Canada,” author Jeremy Kronick fills a...

The Bank of Canada should restore the important role of tracking the money supply as a predictor of future inflation and economic performance, according to a major new book on the conduct of monetary policy from the C.D. Howe Institute.In “Navigating Turbulence: Canadian Monetary Policy Since...

Over the past decade, inflation in many countries has been tepid, despite rock-bottom interest rates and different forms of unconventional stimulative monetary policy, including quantitative easing. For its part, Canada has averaged 1.5 percent inflation over this period, below the 2 percent...

With rising inflation top-of-mind for Canadians, a major question is: Can we predict its future? This Commentary shows that growth in the money supply is a useful predictor of inflation, and examines why and when.Since the early 1990s, the Bank of Canada has pursued a successful...

The Bank of Canada’s balance sheet has undergone a radical transformation since the beginning of the pandemic. The Bank’s total assets more than quadrupled at their peak and still remain 3.5 times higher. The most radical change on the liabilities side has been the increase in settlement...