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  • Canada’s Fossil-Fuelled Pensions June 22, 2018
    The British Columbia Investment Management Corporation is?the steward of BC’s public pensions, but bankrolls companies?whose current business models exceed the climate change targets agreed to in the Paris Agreement to which Canada is a signatory. The pensions of over 500,000 British Columbians and assets worth $135 billion are managed by the Corporation—-one of Canada's largest […]
    Canadian Centre for Policy Alternatives
  • Imagine a Winnipeg...2018 Alternative Municipal Budget June 18, 2018
    Climate change; stagnant global economic growth; political polarization; growing inequality.? Our city finds itself dealing with all these issues, and more at once. The 2018 Alternative Municipal Budget (AMB) is a community response that shows how the city can deal with all these issues and balance the budget.
    Canadian Centre for Policy Alternatives
  • Why would a boom town need charity? Inequities in Saskatchewan’s oil boom and bust May 23, 2018
    When we think of a “boomtown,” we often imagine a formerly sleepy rural town suddenly awash in wealth and economic expansion. It might surprise some to learn that for many municipalities in oil-producing regions in Saskatchewan, the costs of servicing the oil boom can outweigh the benefits. A Prairie Patchwork: Reliance on Oil Industry Philanthropy […]
    Canadian Centre for Policy Alternatives
  • CCPA's National Office has moved! May 11, 2018
    ? The week of May 1st, the Canadian Centre for Policy Alternatives' National Office moved to 141 Laurier Ave W, Suite 1000, Ottawa ON, K1P 5J2. Please note that our phone, fax and general e-mail will remain the same: Telephone: 613-563-1341 | Fax: 613-233-1458 | Email:?ccpa@policyalternatives.ca ?
    Canadian Centre for Policy Alternatives
  • What are Canada’s energy options in a carbon-constrained world? May 1, 2018
    Canada faces some very difficult choices in maintaining energy security while meeting emissions reduction targets.? A new?study by veteran earth scientist David Hughes—published through the Corporate Mapping Project, the Canadian Centre for Policy Alternatives and the Parkland Institute—is a comprehensive assessment of Canada’s energy systems in light of the need to maintain energy security and […]
    Canadian Centre for Policy Alternatives
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Archive for 'exchange rates'

Canada Once Again Adding Value to Its Exports

In the course of researching a forthcoming commentary on Canada’s trade policy for the good folks over at the IRPP, I stumbled upon a surprising and encouraging bit of data.?? I grouped Statistics Canada’s series on exports and imports by broad commodity grouping (CANSIM Table 228-8059) into three categories: 4 primary sectors (including agriculture, energy, […]

ROCHON: Greece, Syriza and the Euro

This is a guest blog post from Louis-Philippe Rochon. Follow him on Twitter @Lprochon. — What a tumultuous few weeks we witnessed in Greece. Though the victory of Syriza was ill-received in particular in Germany and the European Central Bank, it was nonetheless a resounding victory for democracy. This victory may now spill into other […]

ROCHON: Harper in closet over the economy as Canada heads toward another recession

This guest blog post has been written by Louis-Philippe Rochon. You can follow him on Twitter @Lprochon – Harpera€?s recent incarnation as an anti-terrorist crusader has caught many Canadians by surprise. Harper is spending considerable political energy beating the drums of war against terrorists, and introducing a far-reaching, and much condemned, bill aimed at restricting […]

Rochon Asks: “Is the Canadian economy unraveling?”

In a recent CBC blog post, Louis-Philippe Rochon assesses the current state of the Canadian economy. The link to the blog post is here. Follow him on Twitter @Lprochon. Enjoy and share:

Seccareccia on Greece, Austerity and the Eurozone

Over at the blog of the Institute for New Economic Thinking, Ottawa U professor Mario Seccareccia has given an interview titled “Greece Shows the Limits of Austerity in the Eurozone.?? What Now?” The interview can be read here. Enjoy and share:

Low Oil Prices, Good or Bad for Canada?

Unless you’ve been hiding under a rock somewhere, you’re probably well aware that the price of oil has fallen dramatically, to less than $50 / barrel. What this means for Canada’s economic output & labour markets is not yet clear. But Stephen Poloz at the Bank of Canada has??said that he expects the effect to […]

Louis-Philippe Rochon’s Top 10 Economic Predictions for 2015

Louis-Philippe Rochon has written a provocative blog post for the CBC titled “Top 10 Economic Predictions for 2015.” The post is available here. Enjoy and share:

Five Good Economic Developments in 2014

Every year has its ups and downs, of course. But there’s something about New Year’s that makes one naturally want to emphasize the positive.?? So here is my personal list of 5 positive economic developments from the year past — both globally and right here at home –??that warmed this particular economist’s left-wing heart in […]

Dutch Disease, Prices and Wages in Saskatchewan

Jim Stanford recently pointed out that many of the conservative economists who had defended the overvalued loonie have quickly shifted to applauding its depreciation. The Government of Saskatchewan may be making a similar conversion on the road to Damascus. When federal NDP leader Tom Mulcair expressed concern about Dutch disease, premier Brad Wall denied that […]

The Odd Conversion of Mainstream Economists to the Virtues of Depreciation

The long-overdue depreciation of Canadaa€?s currency is gathering steam. The dollar lost 8 cents against its U.S. counterpart, in fits and starts, over 2013. Ita€?s lost another 2 cents since the start of 2014, and negative sentiment about the currency is accumulating among financial analysts and traders. Indeed, once the expectation that the loonie will […]

Saskatchewan Budget Saved by Falling Loonie

Following last weeka€?s troubling news about potash, the Saskatchewan government released its first-quarter financial report today. The headline seems to be a€?Oil Keeps Budget in Blacka€?, with a forecast increase in oil revenue more than offsetting a forecast decline in potash and other revenues. But the forecast West Texas Intermediate price is only up by […]

Industrial Policy, Manufacturing Employment, and the Loonie

The Institute for Research on Public Policy has published a very interesting overview study on the resuscitation of “industrial policy” in economic policy circles.?? It points out that industrial policy levers are used widely by countries around the world–despite??hypothetical efforts (through trade deals and other institutions) to limit their application.?? Enjoy and share:

Dutch Disease is Dead … Long Live Dutch Disease!!!

In the hyper-polarized context of Canadian energy policy debates, even suggesting that there might be a downside to the untrammeled energy boom centred in northern Alberta is enough to get you labelled a traitor or an economic illiterate — or both.?? Conservative political leaders in both Ottawa and Edmonton, backed by energy-friendly think-tanks and the […]

The IMF and the Canadian Manufacturing Crisis

A background study for the latest IMF report on Canada (see pages 42 to 51) adds further weight to the argument that the rise in the exchange rate of the Canadian dollar, driven in large part by high commodity prices, has underpinned a sharp decline in the US market share of Canadian manufacturers since 2000 […]

Exchange Rates, the Price of Oil and the Enbridge Northern Gateway Project Joint Review Panel

This is a guest post by Paul Tulloch,??of LivingWork.ca and frequent commentator on this blog, reporting on some????significant and timely work he prepared for the northern gateway pipeline review panel, analyzing correlations betwen the??price of oil and the Canadian dollar. Exchange Rates, the Price of Oil and the Enbridge Northern Gateway Project Joint Review Panel […]

Oil Prices and the Loonie Again

There’s a refreshingly pragmatic and detailed piece in today’s National Post by Peter Spiro questioning the assumed correlation between oil prices and the loonie.?? It builds nicely on previous discussion of the “oil price-loonie transmission mechanism” that has occurred here and here. Among other salient points, Mr. Spiro points out that: Canadian petroleum exports have […]

Spinning Mr. Carney

For novelty value if nothing else, Mark Carney’s appearance at the CAW convention last week was bound to spark lots of attention.?? After all, we could find no other historical example of a Bank of Canada Governor ever speaking to a union convention.?? That says something in and of itself, of course.?? Central bankers speak […]

Broadening the Bank of Canadaa€?s Mandate

Yesterday, Mike Moffatt took to The Globe and Maila€?s a€?Economy Laba€? in response to my suggestion that the Bank of Canada should moderate the exchange rate. (Perhaps his motive for encouraging me to seek the Saskatchewan NDP leadership was to get me as far as possible from the levers of monetary policy.) ?? My rebuttal […]

Randy Hobacka€?s Pulp Fiction

Last week, Conservative MP Randy Hoback had another letter in The Prince Albert Daily Herald blaming the NDP for the pulp-mill closure in 2006. He still has not addressed my main point about resource royalties. I have the following response on page 4 of todaya€?s Herald: Pulp mill saga proves Mulcaira€?s point Notwithstanding MP Randy […]

More on the OECD and Dutch Disease

Further to my earlier post on the OECD and “Dutch Disease”, I have received a heavily redacted response to an access to information request (A-2012-00073/CN.)?? submitted to the Department of Finance, seeking any comments on the draft assessment and recommendations of the OECD delegation to Canada in 2012. This arrives just as Conservative ads attack […]

Agreeing with Hobacka€?s Headline

I have the following letter in todaya€?s Prince Albert Daily Herald (page 4): Reinvest Resource Wealth in Saskatchewan To the editor: I strongly agree with the title of MP Randy Hobacka€?s letter: a€?Siphoning money out of the west is wronga€? (June 9). My proposal is to keep more money in Saskatchewan by collecting more provincial […]

Dutch Disease on the Rideau

The following is another guest post by Robyn Allan: A report recently released by the Macdonald-Laurier Institute claims Canada does not suffer from the Dutch disease. Unfortunately, the studies the authors draw on for this conclusion are riddled by it. The Dutch disease is a situation where rapid export of a nationa€?s raw resources along […]

Debating Hoback on Resource Royalties

Prince Albert MP Randy Hoback began last weeka€?s inquisition by objecting to my recent op-ed in The Saskatoon StarPheonix on the a€?Dutch diseasea€? debate between Saskatchewan Premier Brad Wall and federal NDP leader Tom Mulcair. He then interrupted to question my NDP affiliation. As indicated in todaya€?s Prince Albert Daily Herald (page A4), I would […]

Dutch Disease, the Canada – US Exchange Rate and Trade With Asia

Today’s Globe editorial provides further evidence of distorted economic reasoning being rolled out to attack Thomas Mulcair. “Mr. Mulcair seems to long for a golden age of manufacturing and a low dollar, but his longing wona€?t take Canada anywhere. Not only the dollar but Asian competition has inflicted damage on Canadian exporters.” The implication seems […]

Inflation On Target; Exchange Rate Off Target

Today, Statistics Canada reported an annual inflation rate of 2%, precisely in line with the Bank of Canadaa€?s target. With inflation under control and renewed risks to the global economy, there is little rationale for the central bank to raise interest rates anytime soon. In fact, the Bank of Canada should now be more concerned […]

Energy McCarthyism

The high-and-mighty virtiol which greeted Tom Mulcair’s comments last week about the downside of oil-powered currency appreciation is lamentable (repeating the over-the-top reaction to Dalton McGuinty’s similar comments a few weeks ago).?? Mulcair made two modest and empirically substantiated statements: the loonie is sky-high as a result of the oil boom in Alberta’s bitumen sands […]

Going to the Wall in Defence of Mulcair

I have the following op-ed in todaya€?s Saskatoon StarPhoenix: Royalty hike cure for Dutch disease Premier Brad Wall calls federal NDP Leader Tom Mulcair a€?very, very divisivea€? for expressing concern that Canada’s overvalued petro-dollar is eliminating manufacturing jobs. In reality, Wall is being divisive by exploiting this legitimate concern to fan the flames of western […]

Canada’s Oil: For Sale to the Highest Bidder

Want to know why Canada’s currency is sky-high despite our sluggish recovery, our large and persistent current account deficit, and our lousy export performance? Check out this fascinating story in Friday’s National Post, by Yadullah Hussain, on why Canada’s oil reserves are such a uniquely hot commodity in the eyes of global oil corporations. The […]

The Oil Price-Loonie Transmission Mechanism

The most interesting comments from Bank of Canada Governor Mark Carney last week, in releasing the Bank’s semi-annual Monetary Policy Report, dealt with the relationship between the price of oil and the Canadian currency.?? The Globe and Mail reported Carney as publicly questioning why currency traders automatically presume such a direct link between the loonie […]

The Economics of Deception

The following is a guest post by Robyn Allan, the former president of the Insurance Corporation of British Columbia who appeared with me on TVOa€?s??panel about Dutch disease. It summarizes her recent paper: An Analysis of Canadian Oil Expansion Economics. There is a chorus singing the praises of the oil industry and its vast economic […]