Fiscal policy

• June 18, 2020

  Spending patterns in a pandemic

  Speech summary Lawrence L. Schembri Greater Saskatoon Chamber of Commerce Saskatoon, Saskatchewan

  Deputy Governor Lawrence Schembri explains how household spending has changed because of COVID-19 and discusses why the Bank expects the recovery to have two phases.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Domestic demand and components, Financial institutions, Financial services, Financial stability, Firm dynamics, Fiscal policy, Housing, Inflation and prices, Labour markets, Monetary policy, Recent economic and financial developments, Regional economic developments, Service sector
• June 18, 2020

  Living with limits: household behaviour in Canada in the time of COVID-19

  Remarks Lawrence L. Schembri Greater Saskatoon Chamber of Commerce Saskatoon, Saskatchewan

  Deputy Governor Lawrence Schembri explains how the COVID-19 pandemic has affected household spending and economic activity, and discusses what the recovery is expected to look like.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Domestic demand and components, Financial institutions, Financial services, Financial stability, Firm dynamics, Fiscal policy, Housing, Inflation and prices, Labour markets, Monetary policy, Recent economic and financial developments, Regional economic developments, Service sector

• Household indebtedness risks in the wake of COVID‑19

  Staff Analytical Note 2020-8 Olga Bilyk, Anson T. Y. Ho, Mikael Khan, Geneviève Vallée

  COVID-19 presents challenges for indebted households. We assess these by drawing parallels between pandemics and natural disasters. Taking into account the financial health of the household sector when the pandemic began, we run model simulations to illustrate how payment deferrals and the labour market recovery will affect mortgage defaults.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Climate change, Credit and credit aggregates, Econometric and statistical methods, Financial stability, Fiscal policy, Housing, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): C, C2, C21, D, D1, D12, D14, E, E2, E24, E27, E6, E62, G, G2, G21, G28, R, R2
• May 20, 2020

  Decisive actions in difficult times

  Speech summary Timothy Lane CFA Society Winnipeg and the Manitoba Association for Business Economics Winnipeg, Manitoba

  Deputy Governor Timothy Lane talks about the Bank’s decisive actions in response to COVID-19, and how these will help Canadians now and in the future.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Credit and credit aggregates, Credit risk management, Domestic demand and components, Financial institutions, Financial markets, Financial services, Financial stability, Fiscal policy, Housing, Inflation and prices, Inflation targets, Interest rates, International financial markets, Labour markets, Lender of last resort, Market structure and pricing, Monetary policy, Monetary policy implementation, Productivity, Recent economic and financial developments, Service sector, Trade integration, Transmission of monetary policy, Uncertainty and monetary policy
• May 20, 2020

  Policies for the Great Global Shutdown and Beyond

  Remarks Timothy Lane CFA Society Winnipeg and Manitoba Association for Business Economics Winnipeg, Manitoba

  Deputy Governor Timothy Lane explains how the Bank is helping Canadian households and businesses weather the COVID-19 crisis, and how our actions today are laying a solid foundation for our future economic recovery.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credit and credit aggregates, Credit risk management, Domestic demand and components, Financial institutions, Financial markets, Financial services, Financial stability, Fiscal policy, Housing, Inflation and prices, Inflation targets, Interest rates, International financial markets, Labour markets, Lender of last resort, Market structure and pricing, Monetary policy, Monetary policy implementation, Productivity, Recent economic and financial developments, Service sector, Trade integration, Transmission of monetary policy, Uncertainty and monetary policy

• The Power of Helicopter Money Revisited: A New Keynesian Perspective

  Staff Discussion Paper 2020-1 Thomas J. Carter, Rhys R. Mendes

  We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Credibility, Economic models, Fiscal policy, Inflation targets, Interest rates, Monetary policy, Monetary policy framework, Transmission of monetary policy, Uncertainty and monetary policy JEL Code(s): E, E1, E12, E4, E41, E43, E5, E51, E52, E58, E6, E61, E63
• February 5, 2020

  Securing prosperity is up to all of us

  Speech summary Carolyn A. Wilkins Economic Club of Canada Toronto, Ontario

  Senior Deputy Governor Carolyn A. Wilkins explains that Canada is well-positioned to secure prosperity and avoid a long period of slow growth if we take the right steps.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Business fluctuations and cycles, Fiscal policy, Interest rates, International topics, Monetary policy framework, Potential output, Productivity
• February 5, 2020

  Our Economic Destiny: Written in R-stars?

  Remarks Carolyn A. Wilkins Economic Club of Canada Toronto, Ontario

  Senior Deputy Governor Carolyn A. Wilkins talks about how to navigate slow growth and discusses the types of policies that would help secure long-term prosperity.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Business fluctuations and cycles, Fiscal policy, Interest rates, International topics, Monetary policy framework, Potential output, Productivity

• Monetary Policy and Government Debt Dynamics Without Commitment

  Staff Working Paper 2019-52 Dmitry Matveev

  I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E5, E52, E6, E62, E63
• March 14, 2019

  The Age of Leverage

  Remarks Carolyn A. Wilkins UBC Vancouver School of Economics and CFA Society Vancouver Vancouver, British Columbia

  Senior Deputy Governor Carolyn A. Wilkins discusses how high leverage is both a headwind to global growth and a vulnerability in the global financial system.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Balance of payments and components, Credit risk management, Financial institutions, Financial stability, Financial system regulation and policies, Fiscal policy