Envelope Economics

Contact

Tag: Economics

  • The Economic Impact of the Canada-U.S. Border

    Make no mistake, lowering the barriers to trade between the Canadian and American borders could bring huge economic gains for Canada. As it stands, trade between Canada and the U.S. is far below its potential level. Although NAFTA eliminated a huge swath of tariffs and duties, other barriers to trade remain. The border between Canada…

    · , , ,

  • For Now, Global Turmoil will not Phase Canada’s Economy

    Canada’s economy has avoided the effects of global financial turmoil thanks to a hot housing market and the end of some temporary economic shocks. GDP is set to have its strongest quarter since the fourth quarter of 2010, offsetting the temporary weakness from the second quarter. Growth in July and August was quite solid, and…

    · ,

  • Opposing Political and Economic Forces Set to Tear Eurozone Apart

    Nouriel Roubini has criticized the European Central Bank for being a lender of last resort – a buyer for European bonds when interest rates become unsustainably high. However, politics is stopping the use of monetary policy, which could soften the economic blow to countries facing severe austerity measures. In a NY times piece today, a…

    · , ,

  • The Possible End of the Euro in Peripheral Countries

    As German Chancellor Angela Merkel announced yesterday, the only way forward for the Euro is for a full political and fiscal union of the member countries. With small peripheral Euro economies, the need for political and fiscal integration was apparent from the start. However, lacking political will, it was impossible to implement. Now with anti-EU…

    ·

  • Canada’s Brain Gain

    To a roomful of academics in August, Stephen Harper announced the end of Canada’s “brain drain” – the end of highly skilled professionals leaving Canada for the U.S. and other countries. Although Canada’s “brain drain” was likely overblown even during the height of its hype (Here is a Stats Can report on the issue from…

    ·

  • Why Isn’t Obama Considering a Consumption Tax?

    Obama’s debt-reduction plan is unlikely to pass Republican-dominated congress because of its focus on higher taxes for the rich, ie. those making over $250,000 a year, as well as higher investment taxes. In total, Obama hopes to take $1.5 trillion more from wealthy Americans. Unfortunately, higher income taxes reduce the incentive to work and higher…

    ·