C.D. Howe Institute

Bank of Canada Should Lower Its Inflation Target

Toronto, Jan. 27 – The Bank of Canada should lower its inflation target as part of a new monetary policy agreement due at the end of 2011, according to a study released today by the C.D. Howe Institute. In Moving Monetary Policy Forward: Why Small Steps – and a Lower Inflation Target – Make Sense for the Bank of Canada, leading economist Angelo Melino explains why the Bank of Canada should keep its current inflation-targeting regime in the new agreement with the Department of Finance, but make several reforms, including a lower inflation target, to achieve some important goals.

Shadow Banking System Needs More Transparency, Not Re-Regulation

The shadow banking system needs more transparency – not re-regulation – to help prevent future financial turmoil, says a study published today by the C.D. Howe Institute. In “Lifting the Veil: Regulation and Shadow Banking,” authors Christian Calmès and Raymond Théoret conclude that the best way to reform the shadow banking system, where the recent subprime mortgage crisis began, is to lift the veil on risk and leverage taken on within banks.

Time to Unclog a Plugged Border

Preclearance of people and goods before they arrive at the Canada-US border is the best way to fix border problems while ensuring public safety, according to a study released today by the C.D. Howe Institute.

Low Risk of US-Style Housing Bust in Canada

Toronto, Aug. 31 – While recent swings in Canadian house prices have raised concerns about the possibility of a U.S.-style housing bust in Canada, the risk of that happening is low, according to a study released today by the C.D. Howe Institute. In “Not Here? Housing Market Policy and the Risk of a Housing Bust,” author Jim MacGee evaluates the likelihood of a US-style housing market crash in Canada by examining what caused the US housing boom and bust from 2000 to 2010 and comparing housing market policies in the two countries.

Toronto’s Bad Fiscal Habits Need Reform

Toronto, August 19 – Toronto has a poor record of fiscal accountability that requires reforms to the city’s financial planning and reporting, according to a study released today by the C.D. Howe Institute. In “Unbalanced Books: How to Improve Toronto’s Fiscal Accountability,” authors Colin Busby, Benjamin Dachis and William B.P. Robson note that as Toronto gears up for a municipal election this fall, the city's poor record on fiscal accountability should be a central issue.