To encourage new growth in the Canadian economy, the Bank of Canada should be actively irrigating financial markets with a growing money supply. Recovery needs support from the continued credibility of the Bank’s 2 percent inflation target – but there are signs that this credibility is...

When trouble in the US housing market this past summer bubbled into problems in credit markets around the world, central banks took action. In a partially successful effort to keep those markets functioning smoothly, several central banks, including the Bank of Canada, took special steps to...

The relative soundness of the Canadian domestic financial system throughout the crisis suggests that Canada’s regulatory framework does not require a major overhaul. But Canada could benefit if other countries introduced reforms to improve their macroeconomic stability. Other reforms are needed.