Highlights the value of ‘prudent’ borrowing in enhancing welfare, but also the risks of over-indebtedness for households, the economy and financial stability. Discusses trends in household debt, various debt metrics and why monetary policy is concerned with how households use borrowed funds.
A core function of the Bank of Canada is to design, produce and distribute banknotes. Over the last few decades, there has been a major shift away from paper-based payment instruments, such as banknotes and cheques, toward electronic means of payment, such as debit cards, credit cards and innovations such as e-money.
Defines this important economic concept, describes different measures of productivity, explains how productivity affects living standards, and summarizes the reasons behind Canada’s disappointing productivity record.