The Bank of Canada appears some way from further monetary tightening. Economic conditions would have to improve substantially and by enough to offset the increasing downside risks to future inflation...

The annual rate of decline in our Capital Economics' measure of M3 continues to slow. (See Chart below.) There is a good chance that the widely expected second round of quantitative easing from the...

The recent freezing of foreclosure proceedings by some major banks may not necessarily be a disaster. But we are mindful that in its early stages the sub-prime crisis did not look too severe either...

House prices have started to fall back in response to the plunge in sales seen since the homebuyer tax credit expired in April. Both the Case-Shiller and FHFA indices showed prices fell in July. (See...