April 16, 2014

Monthly Activity Report

MAY 2013 POLICY RESEARCH

 Cut Provincial Red Tape to Increase Apprenticeships

May 1, 2013 – Outdated provincial regulations are needlessly limiting the number of apprenticeship opportunities available to trades workers, according to a report today from the C.D. Howe Institute. In “Access Denied: The Effect of Apprenticeship Restrictions in Skilled Trades,” authors Robbie Brydon and Benjamin Dachis say that reforming those tight regulations is crucial to meeting demand for skilled workers. Summary of the study hereMedia coverage: Globe and MailNational Post.
May 7, 2013 – Canada’s Competition Bureau should improve the incentives for cartel members to abandon cartels and report their existence, according to the C.D. Howe Institute’s Competition Policy Council.  The consensus of the Council, which held its fifth meeting on April 30, 2013, was that the Bureau’s policies may create insufficient motivation for members of domestic cartels to self-report, potentially allowing harm to Canadian consumers and the economy. Communique here.Summary hereMedia Coverage: Globe and Mail

 

Why the Bank of Canada Should Start Raising Interest Rates Now
May 15, 2013 – After an extended period of record-low interest rates, the Bank of Canada should reverse some monetary stimulus and begin raising interest rates, according to economist Paul Masson. In “The Dangers of an Extended Period of Low Interest Rates: Why the Bank of Canada Should Start Raising Them Now,” published by the C.D. Howe Institute, Masson  argues there is urgency for the Bank to act in view of the economic distortions and  financial risks low interest rates pose for Canada. Summary hereMedia coverage:ReutersGlobe and MailLes AffairesFinancial Post


What Should Governments Do About the Monopolies They Maintain?

Governments in Canada maintain monopolies in certain sectors of the economy through regulations that advance private interests at an unreasonable cost to consumers, according to a report from the C.D. Howe Institute. In “Beer, Butter, and Barristers: How Canadian Governments Put Cartels before Consumers,” authors Robert Mysicka and Marty McKendry criticize the view, established by the courts, that regulations conflicting with competition law should be deemed to operate in the public interest. Summary hereMedia coverage: Wall Street JournalGlobe and Mail,Vancouver SunYahoo Finance

 

C.D. Howe Institute’s Monetary Policy Council Urges Bank of Canada to Hold Overnight Rate at 1.00 Percent

May 23, 2013 – The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada maintain its target for the overnight rate, the very short-term interest rate the Bank targets for monetary policy purposes, at 1.00 percent at its next announcement on May 29, 2013. The Council further called for the Bank to hold the target at 1.00 percent through to May of 2014. MPC Recommendation hereBank of Canada rate announcement hereMedia Coverage:Market News International

 

How Far? How Fast? Getting Back to “Normal” Interest Rates

May 29, 2013 – How far and how fast Canada’s record-low interest rates will rise in the coming years is a vital question for consumers and businesses. In  ”The New “Normal” for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment,” authors Paul Beaudry and Philippe Bergevin find that the normal or “neutral” rate is likely lower than its historical average, and likely will remain at relatively lower levels over the next decade.  Summary hereMedia coverage: Wall Street JournalBenefits Canada

 

MAY 2013 C.D. HOWE INSTITUTE OP-EDS

The new governor may be a surprise, but the bank’s role is firm: Globe and Mail 
Stephen Poloz: A subtle shift in Bank of Canada policy? Financial Post

Aboriginals and the census: Time for a closer look at definitions:Globe and Mail 

Ontario’s hospitals: Pitfalls and opportunities for high-quality care: Toronto Star

Your bitcoin primer: Financial Post

Restrictive provincial ratios bog down access to apprenticeships: Globe and Mail
Tax Avoision: Financial Post
A HOT Idea: Converting carpool lanes to toll lanes will benefit Toronto drivers: Toronto Star

Bank of Canada’s growth view is clouded with hazy thinking: Globe and Mail

Interest Rates: What Will the New Normal Look Like: Financial Post