{"id":23607,"date":"2017-04-16T09:22:50","date_gmt":"2017-04-16T14:22:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23607"},"modified":"2017-04-16T09:22:50","modified_gmt":"2017-04-16T14:22:50","slug":"the-bank-of-canada-should-cease-and-desist","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23607","title":{"rendered":"The Bank of Canada Should \u201cCease and Desist\u201d"},"content":{"rendered":"

The Bank of Canada Should \u201cCease and Desist\u201d<\/a><\/h3>\n
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\"0629poloz-300x2251\"<\/a>\u201cBeneath the symbol<\/span><\/p>\n

We\u2019ll all assemble<\/span><\/p>\n

Oh how we\u2019ll fly<\/span><\/p>\n

Oh how we\u2019ll tremble\u201d<\/span><\/p>\n

\u2014 Captain Beefheart, \u201cIce Cream for Crow\u201d<\/span><\/p>\n

If interest rates are the symbol beneath of which we all assemble, then there are some bad times ahead.<\/span><\/p>\n

But Canada\u2019s \u201cleading economists,\u201d say interest rates are \u201ctoo blunt a tool\u201d to cool the housing market.<\/span><\/p>\n

Tomorrow the Bank of Canada will deliver a rate decision and an accompanying monetary policy report. Governor Stephen Poloz isn\u2019t expected to raise rates anytime soon, but he\u2019ll likely face some tough questions about the connection between low rates and the \u201chot\u201d housing market.<\/span><\/p>\n

Of course, he deserves every hard question thrown at him. And it\u2019s nice that journalists are actually starting to question the obvious connection between low-interest rates and the housing bubble.<\/span><\/p>\n

With Canadians across the country locked out of their local housing markets, and with foreign buyers using Canadian property to protect their wealth from destructive communist dictatorships, frustration needs an outlet and it looks as if Poloz and the BoC are, finally, in the crosshairs. <\/span><\/p>\n

But that doesn\u2019t mean Poloz will listen. After all, the central bank is supposed to remain \u201cindependent\u201d from democratic government and popular opinion. Poloz is making his decisions based on his misunderstanding of the economy, not the will of the mob.<\/span><\/p>\n

As\u00a0<\/span>Avery Shenfeld, CIBC Capital Markets\u2019 chief economist, told BNN in an email, <\/a>\u201cThe Bank of Canada will likely stick to its view that house prices are best dealt with through macro-prudential policies particular to that market, with the interest rate setting used to steer the economy overall,<\/span><\/p>\n

Meaning, let the banks and federal government deal with the issue. The BoC will do what it can, but it will not include raising rates. <\/span><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Bank of Canada Should \u201cCease and Desist\u201d \u201cBeneath the symbol We\u2019ll all assemble Oh how we\u2019ll fly Oh how we\u2019ll tremble\u201d \u2014 Captain Beefheart, \u201cIce Cream for Crow\u201d If interest rates are the symbol beneath of which we all assemble, then there are some bad times ahead. But Canada\u2019s \u201cleading economists,\u201d say interest rates […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,15013,103,431,7617,943],"class_list":["post-23607","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-caleb-mcmillan","tag-canada","tag-interest-rates","tag-mises-institute","tag-stephen-poloz"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23607"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23607\/revisions"}],"predecessor-version":[{"id":23608,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23607\/revisions\/23608"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}