Monthly Archives: April 2006
Even more evidence that people respond to incentives
A few years ago, Human Resources Development Canada (HDRC) ran an experimental project to see how single parents on welfare responded to changes in their budget constraint. It has long been known that single mothers on social assistance are particularly vulnerable to the welfare trap: not only are their payments clawed back as they earn […]
Canada’s manufacturing sector does not have Dutch disease
Thanks largely to increases in the value of oil exports, the Canadian dollar has appreciated by 40% against the USD since the beginning of 2002. So you’d think that our manufacturing sector would be getting hammered, right? After all, that’s the classic Dutch disease scenario: the high demand for natural resource exports drives up the […]
Report from Committee 7
The newly-elected Parliament has begun its first session, and the first couple of days have been taken up with the usual rituals: the election of the Speaker of the House of Commons, the Gentleman Usher of the Black Rod, the Speech from the Throne, and the use of Any Number of Capitalised Words to Describe […]
Yield curve and uncovered interest rate parity update
As a follow-up to this post, here are the US and Canadian yield curves from March 2006 and December 2005. The slopes haven’t changed much, but the US curve has shifted up at a faster rate than the Canadian yield curve. This is part of a trend that goes back at least 12 months: The […]
Worthwhile Canadian Initiative 
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