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Recent opinion pieces by C.D. Howe Institute authors highlight several aspects of the current economic crisis and provide vital analysis of possible fixes for a strong recovery. Please see below to access the OpEds.
In All Keynesians now? Not; A frenzy of Red Ink is Not the Answer for our Economy's Future, (Globe & Mail, December 30th 2008), William Robson, President & CEO, says that a lack of fiscal stimulus does not necessarily herald an economic collapse, however a widespread belief that it will may be part of the problem. Bailouts and accelerated spending may not supply the fiscal relief we desire. Rather, a prudent fiscal framework that does not favour regions or sectors and fairly rewards work, investment, and innovation could ease the economic burden Canada is facing now and in the future.
For the OpEd click here.In This is a Job For…the Bank of Canada; Governor Mark Carney is Far and Away our Best Hope to Cushion the Downturn and Hasten the Recovery, (Globe & Mail, November 25th 2008), William Robson, President and CEO, finds that our best hope for cushioning the effects of the economic crisis and hastening its recovery is the Bank of Canada under Governor Mark Carney. Central banks, says Robson, boast the virtues of speed, power, neutrality, and reversibility that would allow them to act independently and evenhandedly among sectors and regions while allowing them to reverse course as effectively once the emergency has passed.
For the OpEd click here.

In Two Fine Fixes; 1. Make EI Benefits Easier to Get Nationally 2. Expand the Investment Tax Credit, (National Post, December 19th 2008), Finn Poschmann, Vice President, Research, demonstrates that although potential stimulus packages prove to be timely, they are not targeted and may not need to be temporary. Poschmann highlights the importance of creating broad-based targeted measures that treat different industries and regions equivalently and fairly.
For the OpEd click here.

In It's Crunch Time, Canada; Getting Banks to Match the Demand for Credit in a Recession Doesn't Make Much Sense. The Bank of Canada has to Jolt the Economy into Recovery or We Will Fall Even Further, (Globe & Mail, December 22nd 2008), David Laidler, Fellow-in-Residence, delineates methods that the Bank of Canada can employ to expand liquidity while focusing on stabilizing inflation. Such methods include: encouraging financial institutions to lend aggressively and buying assets from the non-bank public. These types of policies will promote the spending needed to restore normality to the economic system while steering it away from the looming and destructive “credit deadlock”.
For the OpEd click here.