OK. Good. Except for one thing. That’s two jobs, not one. Controlling consumer prices but also controlling asset prices. If the two always move together, no problem: you control one, you likely control the other. But they don’t always move together. That’s why Mr. Poilievre mentions asset prices. Sometimes they bubble up even as the Consumer Price Index is simmering gently.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
But that’s about it for monetary policy tools. The Bank has some regulatory power over financial institutions. It can also engage in “moral suasion,” i.e., talk about what it thinks financial institutions should do. And it can buy and sell assets to try to move interest rates at longer-than-overnight terms — though many people, including Mr. Poilievre, don’t like large-scale asset purchasing because of its inflationary effect on the money supply .
If you’ve got essentially one policy instrument — short-term interest rates — how do you hit two policy targets? With one stone, how do you kill two birds . The U.S. Fed did a reasonable job keeping consumer prices under control in the first decade of this century. But house prices went through the roof and their ultimate collapse led to the biggest financial crash since 1929. Former Fed Chairman Ben Bernanke himself might agree in retrospect that interest rates should have been higher through the oughts so as to prick the housing balloon when it was just birthday-party size, before it turned into a Zeppelin.
fpcomment Anybody can do better than Trudeau.
fpcomment “At least”? I think he stands for a lot more than monetary policy - don’t you?
fpcomment Like a snake oil salesman thinks about the magic elixir.
fpcomment hahahahahah.... Oh, you were serious....
fpcomment And he appears to think about everyday Canadians
fpcomment By telling people to invest in crypto. lmao
fpcomment His policy was to back crypto. How has that been working out lately.
fpcomment Too bad he doesn’t have a clue what he is talking about!
fpcomment And wood.
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William Watson: At least Pierre Poilievre thinks about monetary policyHis plan for the Bank of Canada to control asset price inflation is a worthy idea, but not so easy to do with interest rates. Read on. fpcomment Small consolation if those thoughts just serve to highlight why he washed out of a mid-tier Commerce program after just 2 years. fpcomment Crypto “advocat” !!!!! fpcomment Yeah his own.
Source: nationalpost - 🏆 10. / 80 Read more »
Poilievre paints a grim pictureOTTAWA—Groundhog Day for Pierre Poilievre was not a happy one. After several weeks in a news hole, Poilievre finally decided to come out of his hiding place and held a presser in Vancouver. Of course, it would not be in Ottawa. Any journalism student 101 knows that when leaders get off the Hill, questions are softer and more friendly than what they can expect with the national press gallery. So, there weren’t too many tough questions about why Poilievre went into hiding immediately after securing his leadership in a romp. But his message seemed strangely like the one which secured him the leadership. The country is in a mess and only he can fix it. “It feels like everything is broken in this country right now.” Poilievre even blamed a “300 per cent increase in opioid use in Vancouver” on the prime minister. When criticized for lack of media availability, Poilievre became combative. He accused a Radio-Canada journalist of getting his facts wrong when the reporter said Poilievre had not had a press conference in 60 days. He decried the claim that he did not want to meet with the media and expressed interest in speaking to reporters across the country. But he had no time for those on Parliament Hill whom he accused of trying to control the message. It is obvious that Poilievre is not in love with the media. It is also obvious that he thinks by limiting access to reporters in Ottawa, he will be able to shape a more positive message across the country. But the negative messaging at his first major presser was a bad start. By assuming everything in Canada is broken, Poilievre will certainly secure the support of those Canadians who helped his rise to power. He continues to defend the illegal Freedom Convoy and believes that under the current government, nothing in Canada is working very well. In order to broaden his brand, Poilievre needs to reach out to people who still believe there is something good about the country. Most Canadians are feeling the pain of inflation. B Sheila_Copps Maybe cause he’s a GRIM MAN!
Source: TheHillTimes - 🏆 11. / 79 Read more »