Recent economic and financial developments

• The Impacts of Minimum Wage Increases on the Canadian Economy

  Staff Analytical Note 2017-26 Dany Brouillette, Daniel Gao, Olivier Gervais, Calista Cheung

  This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass-through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, J, J2, J21, J22, J23

• Recent Evolution of Canada’s Credit-to-GDP Gap: Measurement and Interpretation

  Staff Analytical Note 2017-25 Timothy Grieder, Dylan Hogg, Thibaut Duprey

  Over the past several years, the Bank for International Settlements has noted that Canada’s credit-to-GDP gap has widened and is above thresholds indicating future banking stress.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Financial stability, Monetary and financial indicators, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): D, D1, E, E3, E32, G, G0, G01, G1, G2, G21, G3, G30