Category Monetary policy
The Bank of Canada phones one in
So what do you do when you have an inflation target of between 1% and 3%, an economy running at capacity (unemployment is at a 30-year low, estimates for the output gap at zero), an overnight rate target of 2.75%, and 2.6% y/y CPI inflation? That’s right. You raise interest rates.
Diagnosing Dutch Disease
The Globe and Mail’s Heather Scoffield asks whether or not Canada is suffering from the ‘Dutch disease’: High oil, high dollar and Dutch disease (subscription req'd): The term Dutch disease was coined in the 1970s to describe Holland's experience with the discovery of natural gas in the North Sea. The sudden gas revenue drove up […]
Worthwhile Canadian Initiative 
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