Rebuilding the Canadian economy in the post-Covid era
Will the central banks be able to withstand the heat?
· At the recent Jackson Hole economic policy symposium Jerome Powell, the head of the US central bank, spent 8-minutes making it abundantly clear he’s going to get inflation under control. A speech that cost some of America’s richest citizens, almost $10 billion a minute as the S&P 500 index dropped 6.5 percent.
· Today, the Bank of Canada stuck to a similar narrative jacking up the policy rate another 0.75 per cent to 3.25 per cent.
11:00 a.m Monday
September 12, 2022
· Commenting on the symposium, former Director of the London School of Economics, Sir Howard Davies, told Bloomberg Surveillance he’s concerned about central banks losing their independence. “Somehow we have to find a manageable pathway down to a lower level of inflation which politicians can support.”
· On Monday, Chris Ragan, the founding director of McGill’s Max Bell School of Public Policy, is going to help us figure all this out. Dr. Ragan is one of Canada’s most respected monetary policy theorists.