He’s never come and said it, but it’s pretty clear that Bank of Canada Governor Stephen Poloz disagreed with former prime minister Stephen Harper’s rush to balance the budget ahead of the 2015 election despite the collapse of oil prices.
The best evidence of the disagreement came in 2016, when Poloz gave a lecture that showed tighter fiscal policy forced the Bank of Canada to keep interest rates low, exacerbating the country’s household debt problem and jeopardizing financial stability. The lecture took place after Prime Minister Justin Trudeau took office, but Poloz still felt obliged to avoid a direct critique of his former political master.
“We will refrain from evaluating the pros and cons of alternative policy mixes,” Poloz told his audience at the University of Ottawa.
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