Picture this scenario: Researchers at a biotech company are working tirelessly on a potential coronavirus vaccine and planning to start a phase three clinical trial soon. This work results in more visibility for the company, and an influx of capital investment. But with that greater visibility and investment comes added … … READ MORE >
Canada
Canada jobs: Canadian economy surprises again, regional disparities remain, outlook uncertain
New jobs data showed that the Canadian economy added another 952,900 jobs in the month of June, exceeding expectations by a large margin. High frequency and alternative indicators of economic activity such as restaurant bookings, public transportation use and traffic congestion levels had predicted a large increase, as had some traditional measures like housing starts, which increased significantly in June. … READ MORE >
Surprise increase in jobs, but some worrying signs for the Canadian economy
Canada is coming back on line. Social distancing measures have been eased; “realer” time and high frequency indicators like traffic levels, public transportation use and restaurant bookings have increased. Canada added 289,600 jobs in the month of May, when economists had expected a decline of 500,000. The unemployment rate increased to 13.7%, but this was due to more people looking for work. … READ MORE >
Sources of deflation: Measuring distress in the real economy and financial markets
The magnitude of the economic shocks strongly implies that the probability of a general decline in prices — a dynamic known as deflation — is rising. This is happening despite $3.4 trillion in liquidity commitments and $2.89 trillion in fiscal support. … READ MORE >
Canada should brace for a long recovery: More than 1 million job losses in March
In the month of March the Canadian economy shed over 1 million jobs in comparison to a consensus forecast of 500,000 job losses. … READ MORE >
The swift and significant monetary and fiscal policy responses to the coronavirus
March 2020 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. … 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 bottomed out … … READ MORE >
The shock to Canada’s system – unsettling financial conditions and unprecedented monetary response
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 >
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 >