Canada's jobs numbers are in for March and they are worse than expected. In the month of March the Canadian economy shed more than 1 million jobs in comparison to a consensus forecast of 500,000 job losses. All provinces and territories reported job losses, but on a relative basis Alberta suffered ... READ MORE >
Canada
The swift and significant monetary and fiscal policy responses to the coronavirus
March has been a month for the ages – one that fiscal and monetary policymakers will never forget. Congress put forward roughly $2.2 trillion, or equal to 11.4% of gross domestic product, in fiscal aid to address current and coming economic difficulties around the country. That boost will most likely ... READ MORE >
Coronavirus pandemic hinders global automotive supply chains
With the recent passage of “phase one” of a trade agreement between the United States and China and the ratification of the United States-Mexico-Canada Agreement (USMCA), 2020 was supposed to be a transitional year for the global auto industry. Analysts had expectations that sales in the sector had ... READ MORE >
The shock to Canada’s system – unsettling financial conditions and unprecedented monetary response
Stress in Canada’s financial system amid the spread of the coronavirus pandemic has risen to levels unseen since the days prior to the September 2008 meltdown of the global financial system. Canada's system, as measured by the RSM Canada Financial Conditions Index, experienced a blow of more than four ... READ MORE >
Coronavirus impact on Canadian economy calls for more government action
There is no question COVID-19 will significantly wound the Canadian economy. The big question governments and policymakers have to grapple with is whether the downturn will be short term or longer term in nature. Indeed, the answer to this question will help to guide the appropriate fiscal policy ... READ MORE >
The case for social distancing: Reducing economic activity to reduce the spread of coronavirus
The coronavirus pandemic has quickly curtailed global economic activity and caused an international recession. While the virus is perhaps abating in Asia, Europe has become the epicenter of the outbreak with more new cases now being reported there than in China. It is only a matter of time before there is ... READ MORE >
U.S. and global financial conditions imply economies at risk
Global financial conditions continue to flash red as global central banks acted forcefully to address the economic and financial effects of the COVID-19 virus. The Federal Reserve put a punctuation mark on monetary policy on Sunday, dropping the fed funds rate back to the zero lower bound (ZLB), boosting ... READ MORE >
Fed intervenes in credit markets, but will it be enough?
The Federal Reserve along with its major central banking partners moved on Sunday to restore functioning credit markets in an attempt to put a floor under the global economy and calm financial markets. The Fed announced a restoration of quantitative easing to the tune of $700 billion. In addition, the ... READ MORE >
As coronavirus spreads, pain goes beyond the hospitality and travel industries
As the human and economic toll of the coronavirus mounts, the real estate industry in North America is wondering where it can safely place its bets. The hospitality industry has taken the brunt of the hit so far, but other sectors of the economy have been nervously watching as the events ... READ MORE >
Real economy faces severe test as coronavirus challenges to business activity mount
Volatility across asset markets and the end of the 11-year bull market run in equity prices strongly implies that the current business cycle will soon come to an end, if it hasn’t already done so. The exogenous shock of coronavirus, which has triggered severe financial shock and profound second-order ... READ MORE >