Inflation spikes higher during war and economic conflict. Price dislocation, price controls and self-rationing are facts of life during wartime. Today, with inflation at a 40-year high and a policy rate pinned to the zero boundary, policymakers face significant constraints as they try to find ways ... READ MORE >
inflation
Preview of coming attractions: Inflation surges to 7.9%
The February consumer price index provided an unpleasant preview of coming attractions in the U.S. economy as top-line inflation soared by 0.8% on the month, pushing the year-ago reading to 7.9%, the fastest rate in 40 years. It is important to note that the February estimation of inflation ... READ MORE >
Consumer choice, self-rationing and preparing for shortages
The war in Ukraine, the cutoff of Russian exports and the possible removal of roughly 4.3 million barrels of crude from U.S. and European markets are likely to have a harmful impact on household balance sheets. Should the conflict continue, we expect it will result in price increases for everything ... READ MORE >
The impact of an energy shock on Canada’s economy
As geopolitical conditions worsen and the human toll of Russia’s invasion of Ukraine mounts, the economic impact is rising as well, especially on global energy markets. Though the impact on Canada’s gross domestic product will be minimal thanks to Canada’s strong energy industry, consumers and ... READ MORE >
Bank of Canada raises rates in response to inflation
The Bank of Canada announced on Wednesday that it would raise its overnight rate to 0.5%, 25 basis points from the lower bound policy rate of 0.25%, to tackle inflation. This marks the first rate hike in more than three years. The bank, however, said it would keep its holdings of bonds on its balance ... READ MORE >
In case of emergency break glass: Reviving the enhanced child tax credit to ease inflation
Should the Russian incursion into eastern Ukraine turn into a full-fledged invasion, it is likely that the global and U.S. economies will absorb yet another supply shock. Energy prices will most likely surge in its aftermath, sending inflation higher than the current 7.5%. At this point, given the ... READ MORE >
As inflation has risen, companies ask: ‘Can I really raise my prices?’
As companies across virtually every sector of the economy continue to grapple with inflation at its highest level in 30 years, more executives are taking a closer look at whether to increase prices. But there are more dynamics at play than just rising costs, and businesses need to take a broader view as ... READ MORE >
Law firms implementing new battle plan in war for talent: Spring 2022 outlook
- Law firms are recognizing that salary increases are not sustainable because of lasting impacts on profit margins, and they’re updating their workforce strategies accordingly. - As lawyer billing rates increase, clients will value productivity and efficiency from their law firms more than ever. - ... READ MORE >
U.S. January consumer price index: Inflation continues to surge
Nothing in January’s consumer price index data released on Thursday implies that the surge in inflation has peaked. Last month's CPI increase will add to the difficult choices at the Federal Reserve on the magnitude of the interest rate hikes that make up the next step of its policy ... READ MORE >
Monetary and fiscal policy in a changing economy: Reflation, and the risks that remain
This is the last in a series of articles regarding monetary and fiscal policy as the economy restarts within a changing framework of labor force choices, automation and pricing. The first article examined the Fed’s challenge in meeting its mandate for full employment. The second looked at the Fed’s other ... READ MORE >