March 5, 2014
The continuing possibility that things could take a turn for the worse in the eurozone ought to be a concern for Canadian policymakers, according to a report released today by the C.D. Howe Institute. In “The Ill Wind that Blows from Europe: Implications for Canada’s Economy,” author Pierre Siklos explores the linkages between the Canadian and eurozone economies and the extent to which contagion from European financial shocks would negatively affect Canada’s economy. “The eurozone area is not out of the woods yet. An economic downturn or financial shock there cannot be ruled out,” noted Siklos. “I find the effect of setbacks in the eurozone on Canada’s economy could be significant.”
