Critics of the Bank of Canada have been out in full force as of late, arguing that through Bank of Canada purchases of Government of
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How the Bank of Canada Creates Money
ABSTRACT This paper provides a general understanding of the process by which the Bank of Canada (BoC) creates money through large scale asset
Continue readingOn Inflation, QE, and Canada’s Fiscal Deficit
Given the recent unprecedented actions taken by both the Government of Canada and the Bank of Canada in response to the pandemic, it
Continue readingDo Banks “Spend” Reserves?
As regular readers are no doubt aware, I’ve often argued against the notion that QE operations conducted by the Bank of Canada are
Continue readingDoes the Bank of Canada Need to “Unwind” its Balance Sheet?
With the recent emergency response to the COVID-19 pandemic, the Bank of Canada (BoC) has managed to expand its balance sheet in a
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