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February 13, 2020

February 13, 2020 – Canadians’ level of indebtedness is raising concerns on the basis of several traditional measures, but the most reliable predictor of trouble ahead is the debt-service ratio, says a new report from the C.D. Howe Institute.

In “Predicting Financial Crises: The Search for the Most Telling Red Flag in the Economy,” authors Jeremy Kronick and Steve Ambler point to debt servicing as an improvement over traditional credit measures in predicting future economic growth and financial crises.

Jeremy Kronick
Jeremy Kronick

Jeremy is Associate Director, Research at the C.D. Howe Institute, where he is in charge of the financial services and monetary policy research programs.  He has written on a range of topics including the link between demographics and monetary policy, how blockchain technology will impact the economy, and the importance of the financial services sector in trade negotiations. 

Steve Ambler
Steve Ambler

Professor Steve Ambler taught at l’École des sciences de la gestion de l’Université du Québec à Montréal (ESG UQAM) from 1985-2020, and chaired the Department from 2012-2015.