Stress in Canada’s financial system this week 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. … READ MORE >
Canada
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 response. … READ MORE >
The case for social distancing: Reducing economic activity to reduce the spread of coronavirus
A simple analysis shows that social distancing should be taken as quickly as possible by individuals to preserve their health and by corporations to avoid liability issues. … 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, dropping the fed funds rate back to the zero lower bound (ZLB) boosting asset purchases, opening dollar swap lines and reducing the rate it charges at its discount window. … 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. … 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 unfold. … 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. … READ MORE >
Bank of Canada lowers policy rate in response to health crisis
Canada’s central bank moved aggressively to drop its policy rate by 50 basis points, to 1.25%, following action taken by the Federal Reserve on Tuesday. … READ MORE >
Holding interest rates steady, Bank of Canada keeps the door open for a cut
The tone of the Bank of Canada’s policy statement would imply that it stands ready to cut rates to bolster the domestic economy should growth slow. … READ MORE >
USMCA is a solid opportunity for the middle market
The pact, called the United States-Mexico-Canada Agreement, includes a chapter dedicated to small and medium enterprises – a first for a multilateral trade agreement – and also adopts a wide array of provisions from the abrogated Trans Pacific Partnership trade treaty. Both of these provisions are major wins. … READ MORE >