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Bank of Canada

A CBDC, eh?

David Andolfatto recently wrote a helpful article about whether Canada needs a central bank digital currency , or CBDC. I agree with David that a CB…

Are the Bank of Canada's bond purchases illegal?

Pierre Poilievre, Conservative MP for Carleton, alleges that the Bank of Canada's bond buying program contravenes the Bank's powers enunciate…

Judy Shelton at the Bank of Canada? No thanks

How would I feel if Judy Shelton was a candidate for Governor of the Bank of Canada? Here are my thoughts. A bit of background first. Judy Shelton w…

A very very simple explanation of monetary policy

Scale & weights | Aylmer, Quebec | Canadian Museum of History   This post is for my dad, who says he doesn't understand my writing but remain…

Pennies as state failure

We can all think of examples of state failure. The most obvious include the inability to protect citizens from criminals, failure to provide drinkabl…

Is fiat money to blame for the Iraq war, police brutality, and the war on drugs?

I often encounter memes claiming that fiat money is to blame for all sorts of government evils. Here is one example from Kraken bitcoin strategist sp…

How the Bank of Canada's balance sheet went from $118 billion to $440 billion in eight weeks

Ever since the coronavirus hit, the Bank of Canada's balance sheet has been exploding. In late February its assets measured just $118 billion. Ei…

Stephen Poloz needs to be honest with Canadians about negative interest rates

To soften the blow of the COVID-19 pandemic, the Bank of Canada is running what it sees as an expansionary, or loose, monetary policy. I think an exp…

Flooding or marijuana? Two theories for falling cash demand

When Canada legalized marijuana in October 2018, the amount of banknotes in circulation took a sudden plunge. In a 2019 paper available here , econom…

Should governments finance themselves through their central bank?

In places like the U.S. and Europe, it is actually difficult—if not impossible—for a government to have its central bank pay for government programs…
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