Archive for the Macro Chapter 5 Category

Who Would Buy a Bond with a Negative Yield ?

The recent discussion by Stephen Poloz of charging negative interest rates to chartered banks on their deposits at the Bank of Canada was preceded earlier in the year by stories about negative interest rates on bonds in Europe. If February 2015, a Globe & Mail story reported […]

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Plunging Oil Prices as a Positive Supply Shock ?

A year ago, oil prices had plunged from $110/barrel to around $70/barrel. There was much concern then, as there is today with oil prices under $40/barrel, about the effects on the Canadian economy. The Globe & Mail ran a story “Oil’s Plunge to Buoy Global Economy: A […]

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