As lender of last resort, the Bank of Canada has the responsibility of stepping in to provide liquidity in cases when markets require emergency funding. In crisis situations, a timely and effective response is imperative for avoiding systemic breakdowns. In this Commentary, I argue that in order...

The onset of the pandemic saw a high degree of coordination between our monetary and fiscal authorities. The Bank of Canada lowered its overnight rate to its effective lower bound and engaged in quantitative easing, governments pumped in stimulus and support programs, and the Office of the...

The Bank of Canada should weigh how income inequality affects monetary policy effectiveness as it pursues its 2 percent inflation target, says a new report from the C.D. Howe Institute.In “Monetary Policy, Income Inequality, and Inflation — What's the Link?” authors Jeremy Kronick and...

When monetary and fiscal policy are in conflict in periods of high inflation, with the Bank raising interest rates while the government increases new spending, the risk of an ever-growing debt burden and even higher inflation increases. However, our research shows that because people are mostly...