Monthly Archives: April 2008
Comparing central banks’ responses to the credit crunch
Here’s an interesting graph from the Bank of Canada’s Monetary Policy Report: Yes, yes, I know; it’s almost impossible to tell the difference between the UK and Canada in that graph, but if you look at the original document and zoom in to 200% of the original size, you can (just barely) conclude that the […]
Canada and Argentina in the 20th century
Whenever I teach growth theory, I like to compare the Canadian experience with that of Argentina. Up until the 1930’s, the two countries followed very similar paths: foreign investment financing the development of resource-based economies. But then the 1930’s happened, and Canada and Argentina parted ways. This is the best graphical demonstration that starting points […]
Why the Bank of Canada should stop cutting interest rates
Today’s CPI release has generated certain expectations (documented here, here, and I expect in pretty much every story covering the March inflation numbers) that a 50 bps cut in the overnight rate target is in the offing next Tuesday. Those expectations may very well be fulfilled – Mark Carney has been dropping broad hints ever […]
High taxes doesn’t mean big government. And low taxes doesn’t mean small government.
I’ve never, ever understood the assertion that high taxes = big government: It is possible to imagine an economy with high taxes that are used to redistribute income with only a minimal distortion of markets. It is possible to imagine an economy with low taxes that are used to pay the salaries of a small […]
Canada’s Goldilocks housing market and the Bank of Canada
Everyone knows that housing markets are crashing and burning all over the place: the US, the UK, Spain, and many more besides. But that’s not happening here: Although housing starts in the US are about half of what they were two years ago, they are more or less holding up in Canada. And new house […]
Worthwhile Canadian Initiative 
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