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The case for eventual inflation

While inflation never materialized after the last financial crisis and the subsequent economic expansion, this time will be different, said Erik Weisman, portfolio manager and chief economist at MFS Investment Management, when speaking at the Canadian Investment Review’s Investment Innovation Conference in November. After the global financial crisis, quantitative easing didn’t generate inflation because the […]

Bidenomics: More stimulus, tougher regulation and gridlock

President-elect Joe Biden will inherit a vulnerable economic recovery under threat from a resurgent virus, likely with a divided Congress that will hinder his ability to address the challenges. Yet despite the obstacles, the former vice-president and senator will pursue a drastic shift in America’s economic policy. He has vowed to reverse much of the […]

Bank of Canada holds rate steady, says coronavirus economic recovery likely by 2022

The Bank of Canada kept its key interest rate on hold Wednesday as it said the country’s economy won’t recoup the losses from the coronavirus until 2022, with the road to recovery dependent on the path of the pandemic. In July, the Bank of Canada said it believed the country had been spared from a […]

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The governor of the Bank of Canada said managing the risks from the pandemic is more critical than ever and it is key to a recovery and the stability of society. Tiff Macklem said in a Thursday morning speech that a second historic recession in just over a decade underlines how managing financial system risks […]

While massive monetary policy response didn’t drive inflation following the 2008/09 financial crisis, institutional investors are mulling over whether things may be different this time. The global economy has rarely seen such a swift willingness to engage with economic calamity on both monetary and fiscal levels, says Erik Weisman, chief economist and fixed income portfolio […]

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Federal Reserve Chair Jerome Powell warned Wednesday that the viral epidemic is endangering the modest economic recovery that followed a collapse in hiring and spending this spring. As a result, he said, the Fed plans to keep interest rates pinned near zero well into the future. That faltering economy, pressured by a resurgence of the […]

Nearly two million Canadian workers could remain unemployed this year, according to forecasts in the federal government’s long-awaited “fiscal snapshot.” The document released Wednesday details how the Trudeau Liberals see the coronavirus pandemic dragging down the domestic economy and sending the deficit to a historic $343.2 billion. The economic and fiscal report lays out the […]

How can pension plans position for potential deflationary or inflationary scenarios?

With so much uncertainty on the horizon, should pension plan sponsors be preparing to operate in a deflationary or inflationary environment? In the short term, the economic environment will be deflationary, says Hugh O’Reilly, executive in residence at the Global Risk Institute, noting demand is down because people are staying home and not spending. “And […]

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Among the myriad fiscal responses to the coronavirus pandemic, perhaps none has received more attention in the U.S. than the federal programs for small businesses. There’s good reason. Small businesses serve as a critical source of economic growth and job creation, accounting for nearly half of national employment and 43.5 per cent of the nation’s […]

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Monetary and fiscal policy-makers around the world are taking different approaches to tackling the  current economic crisis, but their actions today will pose challenges down the road, says Erik Weisman, chief economist at MFS Investment Management. Looking at combined monetary and fiscal policy responses, the U.S. is likely the most aggressive, while Europe and Japan […]