The Globe and Mail’s David Parkinson wrote Wednesday that the latest trade numbers put Bank of Canada Governor Stephen Poloz in a spot. Indeed. The figures are terrible – some might even say atrocious. The central bank’s forecasts for economic growth are beginning to look optimistic – that could prompt a change in monetary policy.
But why is it always the central bank that is “in a spot” when the going gets tough?
The answer, of course, is that politicians in Canada and almost everywhere else in the industrialized world essentially have abdicated responsibility for post-crisis economic policy to men and women such as Mr. Poloz and Janet Yellen, the head of the U.S. Federal Reserve. Leaders and lawmakers have done so little to boost their economies in recent years that we’ve subconsciously given up on them, concentrating instead on the people who at least are trying to do something positive – the central bankers.
Continue reading (paywall) ...