RTVE News

The Governor of the Bank of Canada warns that interest rate hikes are coming, but that companies will also have to increase their productivity to help limit long-term price increases.  In the prepared text of a speech for a Canadian Chamber of Commerce virtual event, Tiff Macklem said businesses would have an important role to play in increasing their investments in worker productivity to create non-inflationary growth. According to him, boosting labor productivity, which measures output within a specific range, is necessary so that wage growth is not accompanied by increases in unit labor costs. Tiff Macklem says Canadian business investment has lagged U.S. business investment for a long time, including in some sectors like information and communications technology, but he notes there are signs of an upcoming uptick in spending.

Nobody likes losing money.  Studies show that we feel losses twice as intensely as gains, as Daniel Kahneman and Amos Tversky said in 1979, “losses are more tragic than gains”.  In other words, if we lose $100, we feel that loss more strongly than a gain of $100.  This behavior is called “loss aversion” and it is driven by the way we humans make decisions.  It's not our fault, it's just in our nature. It is not the same as risk aversion Loss aversion differs from risk aversion, i.e. the tendency of people to prefer low uncertainty outcomes to high uncertainty outcomes, even though in the second case the average outcome is equal or superior in terms of monetary value to the result obtained in the first.  “It's not really that people don't like to take risks,” says Dan Kemp, director of global investments at Morningstar Investment Management.  “What people don't like is losing something.  We suffer from loss aversion and you know what I'm talking about i...