-A A +A
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 M. Kronick is Associate Vice President and Director of the Centre on Financial and Monetary Policy at the C.D. Howe Institute.

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.