Interest Rates and the Economy

If millennials have no money, how can house prices be high?

Author: William Watson Over time, the main drivers of home prices are incomes and interest rates. Read more about If millennials have no money, how can house prices be high? Tags:  affordable housing housing affordability housing prices home prices ...

Inflation Remains Muted and Retail Sales Fall

The Conference Board of Canada’s Economics Director Matthew Stewart offers the following insights on today’s consumer price index and retail sales data: Quote “Inflation remained weak in February and retail sales declined for the third month in a row. This slow start to the year is inline wit ...

Throwing In The Towel On A 4% Fed Funds Rate

Since I do not do market forecasting, my comments on the actual state of bond markets have been sporadic. I just want to refresh my views, particularly since I have had a recent increase in readership. Although writing a book on recessions obviously skews my thinking, my argument is straightforwar ...

Canadian Federal budget once again a progressive document

I haven‘t yet fully read and digested the latest Canadian  Federal budget but so far I find it to be a realistic and progressive assessment of the likely course of the Canadian economy over the next year. Unemployment although at its lowest point in four decades could still be lowered further and ...

18 ways the federal budget will affect your wallet in 2019

The 2019 federal budget is full of winners and losers. In fact, everyone from first-time home buyers, to seniors, to workers looking to upgrade their skills walked away with money in their pocket. But small business and high-income earners? Not so much. Here are 18 key ways the federal budget will ...

Refundable tax credits, $250 a year for skills retraining for workers in Budget 2019

Canadians could soon be putting $250 a year towards better skills while getting federal help to pay the bills. One of the showpieces in Tuesday’s federal Liberal budget, part of more than $1.7 billion in planned new spending over five years, aims to help workers prepare for tectonic digital shift ...

Wisconsin's Big Public Pension Cheese?

Elizabeth Bauer wrote a comment for Forbes, 'Go North, Young Man,' To The Wisconsin Public Pension System:To parapharase Horace Greeley in his Manifest Destiny exhortation, but for those seeking out well-funded public pension plans, it's time to go north -- northwards from Illinois, that is, to th ...

Market Update. Investors buy the rumour of a US-China trade deal

Canadian, U.S., China and global markets continued their rally from late December into February. Why? Investors are optimistic that a trade deal between China and the U.S. will finally get signed — giving a bit more predictability to the global economy. But that’s not all. These are some of the ...

Federal budget 2019: Likely some goodies for investors

There’s no budget quite like an election year budget. In 2015, the last election budget, then Prime Minister Stephen Harper tried to win over the common Canadian by introducing a host of budget day goodies. He boosted the tax-free savings account’s contribution limit from $5,000 to $10,000 (wh ...

Understanding DSGE Macro Models

Dynamic Stochastic General Equilibrium (DSGE) articles have attracted a great deal of attention in economic squabbling. In my view, the existing discussions of DSGE models -- mine included -- have been confusing and/or misleading. Properly understood, DSGE macro models are an attempt by neoclassica ...