About the C.D. Howe Institute

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

Get the App

Op-Eds

Share

25 Apr 2017
Apr
25
It haunts us still. Softwood lumber is back, the defining Canada-U.S. trade dispute of the ages. The preliminary duties announced Tuesday are designed to affect billions of dollars of Canadian exports. Even ahead of final duties to be announced in June, these will decimate Canadian exports and affect the livelihood of many thousands of Canadians. Over the coming months, softwood lumber will dominate the front pages of our newspapers (though relegated to the back pages in U.S. media). As if there wasn’t already enough tension in the bilateral relationship, softwood lumber adds even more stress, with Presisent Donald Trump’s demand for NAFTA renegotiations (which he describes as the most “disastrous” trade agreement ever signed by...
18 Apr 2017
Apr
18
Business investment in Canada is weak. The 2017 federal budget highlighted how it is lagging the rest of the economy. Bank of Canada Governor Stephen Poloz and his colleagues have expressed concerns. A few weeks ago, Deputy Governor Larry Schembri emphasized the importance of business spending on new plant, equipment and intellectual property for growth in the short run, and for the capital stock that raises living standards over time. Weak investment is a problem now and for the future. We estimate that Canadian businesses will spend about $11,700 per worker on new, non-residential capital this year, far below a peak of $15,100 in 2014. The fall-off means the average Canadian worker will have less infrastructure, machinery...
16 Apr 2017
Apr
16
The Bank of Canada announced on Wednesday, in a familiar refrain, that it is maintaining its target for the overnight rate. However, the announcement and accompanying news conference signalled a definite change of tone. Barring major negative surprises, it took the possibility of a rate cut off the table. With inflation at target, should the positive economic news continue, a rate hike before 2018 is a real possibility. Two questions arise: first, what might cause this earlier rate hike, and second, is it necessarily a good thing? Positive economic news that leads to an improvement in the real economy, and thereby an increase in inflation would be a good problem for the Bank of Canada. However, there are at least two other...

Connect with Us

© 2014 C.D. Howe Institute. All Rights Reserved.

Connect with Us

© 2014 C.D. Howe Institute. All Rights Reserved.