On July 13th, the Bank of Canada began to tighten monetary policy, arguing that the economy would be operating at full capacity by the end of this year. This action was guided more by the economic dogma of a “natural” unemployment rate crafted by Milton Friedman back in the 1970s than by hard evidence of a looming increase in inflation.
On July 13th, the Bank of Canada modestly hiked interest rates and argued that the economy would be operating at full capacity by the end of this year. The International Monetary Fund recently said that Canada would lead growth among the big economies in 2017 as a global economic recovery finally begins to take hold.
Inequality is a major theme of current research in economics throughout the world. The now-famous Capital by Thomas Piketty released in English in 2014 is a case in point. It is also a major focal point in Canada, as illustrated by the bookIncome Inequality: The Canadian Story published recently by the Institute for Research on Public Policy and in the ongoing work of the Broadbent Institute and other groups.
In the October 2013 Speech for the Throne, the Canadian government announced it would introduce balanced-budget legislation. At the time this vague proposal attracted little interest from anyone, although a year later the Parliamentary Budget Office (PBO) did produce a substantial document analyzing the benefits and costs of such a proposal.