Home/Macro Chapter 9

Secret Reason for Airline Basic Economy Fares

Basic economy fares in the air travel industry and not primarily intended to compete with low-cost carriers or attract price-conscious consumers with elastic demands. The many restrictions on travel, luggage, cancellation fees are designed to make corporate travel agencies not even consider basic economy fares, and instead spend for [...]

Secret Reason for Airline Basic Economy Fares2020-05-09T16:56:34-04:00

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 on negative [...]

Who Would Buy a Bond with a Negative Yield ?2020-05-09T13:08:45-04:00