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Monetary policy shares something with soap operas: the plot advances slowly until suddenly something crazy happens; like a lost hero’s return from the dead just as his lover is about to marry his best friend, or the Swiss National Bank implements negative interest rates. It’s probably safe to miss a few episodes, but you just never know ...
Any follower of Canadian central banking who skipped the speech last week by Bank of Canada Deputy Governor Timothy Lane missed some important clues in the institution’s thinking. Perhaps the most dramatic was Lane’s endorsement of more aggressive fiscal policy. (I wrote about that at length here.) But Lane also talked about financial stability. Anyone hoping the central bank would make a play for more regulatory powers will be disappointed. Continue reading at Centre for International Governance Innovation ... Comments are closed.
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