Macroeconomics for everybody! The (new) 10-Minute Take podcast from RBC Economics will explain (in simple terms) what the latest economic data means and why you...
How do Economists measure the impact of potential tariffs on Canada?
The looming threat of potential U.S. tariffs is keeping economists and monetary policymakers up at night. In this episode, RBC Economics’ Claire Fan and Carrie Freestone break down:
-How RBC Economists are thinking about a U.S. tariff shock- including the multiple stages of passthrough to the economy.
-How we think the Bank of Canada could respond to higher prices resulting from tariffs.
-Why “reshoring” isn’t as easy as it sounds.
Tune in to hear why tariffs are demand-destructive and to understand the Bank of Canada’s predicament if required to respond to these policy-induced price-shifts. While we highlight that the economic damage is likely too severe for these threats to materialize, we also discuss what the consequences would be for the U.S. and Canada if tariffs are implemented.
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10:11
The Loonie slump: What’s behind it and where it’s headed
Season three of the 10-Minute Take is here, and we’re kicking things off with a deep dive into a hot topic—the Canadian dollar’s dramatic dip against the U.S. dollar, to levels unseen since the pandemic.
In this episode, RBC Economics’ Claire Fan and Carrie Freestone break down:
• The key drivers behind the loonie’s recent slump.
• What this means for inflation in the current economy.
• Where we think the currency is headed in 2025.
Tune in to hear why we don’t expect the Bank of Canada to bat an eye, and how Canada’s strong net international investment position will be particularly helpful.
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10:10
What economists are thinking about heading into 2025
The Canadian economy has been through a whirlwind in 2024. Canada has been in an extended period of underperforming per capita growth compared to the United States since 2019. Still, 2024 was a pivotal year for Canadians with inflation coming down and interest rates finally moving lower.
But has inflation truly been tamed? If so, why doesn't it "feel" like affordability has truly gotten better? And, how do big policy pivots on immigration and global trade fit into it all?
Join RBC economists Carrie Freestone and Claire Fan in this 2024 10-Minute Take wrap-up episode. They'll discuss the highlights in a year-in-review before addressing key themes for 2025 in the final episode of the season.
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11:10
What does a massive U.S. government deficit mean for Canada?
The U.S. government deficit is unusually large at 6.4% of gross domestic product in 2024—the average over the last five decades is 3.7%. Promises from the new Trump administration on the campaign trail suggest it is likely to grow even bigger over the next four years.
Massive fiscal spending has been fueling U.S. growth, but will have important and, ultimately, costly consequences for the economy. Lower corporate taxes could also hurt Canada’s competitiveness, at a time when the economic divergence with the U.S. is already large. In this 10-Minute Take, RBC economists Claire Fan and Carrie Freestone dive into the growing government deficit in the U.S., and its ripple effects on Canada.
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10:42
Why are so many Canadians struggling if we’re amassing record savings?
Canadian household balance sheets appear exceptionally strong as disposable income continues to rise alongside savings. But, what the latest economic data tells us is distinctly different from how many households are feeling. There are many signs the average Canadian consumer is suffering. How can both be true at the same time?
On this episode of the 10-Minute Take, RBC economists Carrie Freestone and Claire Fan discuss this paradox of some Canadians falling behind on credit card payments, while others see savings rise. We’ll unpack the different realities experienced by various income groups, focusing on spending behaviours, debt accumulation or savings, and the distinct difference between wage growth and changes in disposable income.
Macroeconomics for everybody! The (new) 10-Minute Take podcast from RBC Economics will explain (in simple terms) what the latest economic data means and why you should care. It's everything you wanted to know but were too shy to ask -- in less than 10 minutes.
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