Bank of Canada Cuts Rates as Coronavirus Delivers ‘Negative Shock’

The Bank of Canada cut interest rates dramatically in March 2020 in attempting to counter the depressing effects of COVID-19 on economic activity. But the Bank makes clear that monetary policy will not be enough and the government must respond with aggressive fiscal policy spending. [...]

Bank of Canada Cuts Rates as Coronavirus Delivers ‘Negative Shock’2020-05-09T16:49:06-04:00

More Potato Chip Deficit Forecasts

Justin Trudeau and the Liberals were elected on an economic platform that included running deficits to finance infrastructure during a period of slow growth and low borrowing costs. In a Globe & Mail column, Jeffrey Simpson reviews the causes of slow growth, and recognizes the legitimate economic argument for federal [...]

More Potato Chip Deficit Forecasts2020-05-09T10:38:48-04:00

Does Canada Need a Few Small Deficits ?

Chris Ragan has an excellent column - "A few small deficits may actually be just what Canada needs" - in yesterday's Globe & Mail. [Also excellent because it illustrates most of the key policy implications discussed in Ch 12 (Spending Others' Money: Fiscal Policy, Deficits, and National Debt) of Macroeconomics for Life [...]

Does Canada Need a Few Small Deficits ?2020-05-07T16:09:25-04:00

A Balance Sheet Recession

Richard Koo (Chief Economist, Nomura Research Institute) did a 10 minute video in 2010 for the Institute for New Economic Thinking (INET) that is the clearest and most succinct, yet comprehensive, explanation of balance sheet recession.  I have shown this video 10 times in different courses, and students are spellbound [...]

A Balance Sheet Recession2020-05-09T11:22:09-04:00
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