August 25, 2021 5:47 pm
As Canada’s COVID-19 vaccination rates achieve critical thresholds in mid 2021, fundamental changes in fiscal policy are recommended to boost the Canadian economy’s supply side and make governments’ demand-side support more effective.
May 31, 2021 3:53 pm
COVID-19 Triggers Great Nonfinancial Risk Crisis: Nonfinancial risk management best practices in Canada Lois Tullo, Executive in Residence, Global Risk... View Article
April 15, 2021 2:12 pm
Examining Canada’s economic experience during the pandemic offers an opportunity to assess the fiscal and monetary policy lessons learned as of early 2021.
March 26, 2021 11:27 am
As the gross debt/GDP ratio grows, Canada faces the risk of increased interest coverage payments leading to reduced future fiscal flexibility. An acknowledgement of this increased risk must be met with an understanding of a plan to build the economy and to pay down the deficit. This raises a number of issues that need to be debated to address the risks coming in the future.
March 19, 2021 11:53 am
With Canada now in its second year of living with COVID-19, the pandemic continues to pose ongoing and new
challenges for financial institutions (FIs) in building resilience. Beyond unprecedented health, financial and economic risks, FIs face future challenges managing staff, operations and client relationships during the broader vaccine rollout.
January 14, 2021 12:56 pm
The COVID-19 pandemic provides a unique setting in which to evaluate the importance of a country’s
fiscal capacity in explaining the relation between economic growth shocks and sovereign default risk.
For a sample of 30 developed countries, we find a positive and significant sensitivity of sovereign
default risk to the intensity of the virus’ spread for fiscally constrained governments. Supporting the fiscal channel, we confirm the results for Eurozone countries and U.S. states, for which monetary policy can be held constant. Our analysis suggests that financial markets penalize sovereigns with low fiscal space, thereby impairing their resilience to external shocks.