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Mike Tyson’s one liner “Everyone has a plan until they get punched in the mouth” comes to mind when I think of the predicament central banks must confront these days. The plan is, and has been, to keep interest rates low for an extended period. While the punch in the mouth is the building up […]

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 […]

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 […]

Europe’s central banker: Recovery risks losing momentum

The head of the European Central Bank says the economic recovery from the coronavirus pandemic “risks losing momentum” due to a second wave of infections and that more stimulus could be added if necessary. “The second wave of the pandemic in Europe, notably in France, and the resulting new restrictions are adding to the uncertainty […]

The Bank of Canada sought Wednesday to temper economic excitement about a sharper-than-expected rebound from the depths of the coronavirus crisis, pointing to worrying trends that signal all is still not well. In a statement, the central bank’s governing council said the bounce-back activity in the third quarter looks to be faster than it anticipated […]

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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The head of the Bank of Canada made an international pitch to his fellow central bankers on Thursday to forge closer ties with average citizens to manage economic expectations through the pandemic, or risk losing public trust and face an existential crisis. Speaking remotely at an annual gathering usually hosted in Jackson Hole, Wyo., governor […]

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The coronavirus pandemic will leave some long-term economic damage that will only become clearer as the country moves further along a “prolonged and bumpy” course to recovery, Canada’s top central banker says. In his first speech as governor, Tiff Macklem said the central bank expects to see growth in the third quarter of this year […]

Will yield curve control come to North America?

With central banks targeting short-term interest rates near zero and engaging in quantitative easing, will they resort to other monetary policy tools like yield curve control to further stimulate the economy? Yield curve control is when a central bank targets a longer-term interest rate and then pledges to buy the required amount of bonds to […]

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Historically, financial institution decision-makers come from the same educational backgrounds, which have rewarded them for thinking in linear and conventional ways, said David McWilliams, professor of global economics at Trinity College Dublin, during a session at the Canadian Investment Review’s Plan Sponsor Exchange conference in February. The single biggest concentration of conventional thinkers is deep […]

  • By: Avery Page
  • March 20, 2020 December 13, 2020
  • 09:12