{"id":9037,"date":"2015-06-12T08:46:26","date_gmt":"2015-06-12T13:46:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9037"},"modified":"2015-06-12T08:46:26","modified_gmt":"2015-06-12T13:46:26","slug":"should-stephen-poloz-be-more-worried-about-the-canadian-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9037","title":{"rendered":"Should Stephen Poloz be more worried about the Canadian economy?"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/should-stephen-poloz-be-more-worried-about-the-canadian-economy-1.3109418\" target=\"_blank\">Should Stephen Poloz be more worried about the Canadian economy?<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>Blandly reassuring, is Bank of Canada governor really ready if something bad happens?<\/strong><\/p>\n<p>I hope Bank of Canada governor\u00a0Stephen\u00a0Poloz\u00a0was putting on a brave face.<\/p>\n<p>Despite a warning that risks had increased, mostly due to the property market,\u00a0the avuncular Poloz\u00a0was blandly reassuring when he met with the media yesterday to discuss the bank&#8217;s latest\u00a0<a href=\"http:\/\/www.bankofcanada.ca\/2015\/06\/fsr-june-2015\/\">Financial System Review<\/a>.<\/p>\n<p>His senior deputy Carolyn Wilkins\u00a0was even more hypnotically nerveless.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/economy-better-able-to-withstand-oil-shock-bank-of-canada-says-1.3109258\">Economy better able to withstand oil shock, Bank of Canada says<\/a><\/strong><\/li>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/canadian-dollar-on-the-rise-as-u-s-greenback-weakens-1.3107834\">Canadian dollar on the rise as greenback weakens<\/a><\/strong><\/li>\n<\/ul>\n<p>Not that we wanted our two most senior central bankers to be wailing\u00a0and renting their garments in despair.\u00a0Of course it is nice to feel that Canada&#8217;s financial system\u00a0is in cool\u00a0hands.<\/p>\n<p>But is the governor lulling us to sleep when we need to be very wide awake?<\/p>\n<h2>Why worry?<\/h2>\n<p>We must just hope that\u00a0behind the scenes, in the Bank of Canada war room, the soothing\u00a0Poloz\u00a0and ice-cool\u00a0Wilkins\u00a0expose themselves to a few\u00a0more\u00a0terrifying\u00a0scenarios. Because a survey of credible sources says the world, and the Canadian\u00a0economy, remain\u00a0fraught.<\/p>\n<p>While it may be nice for a firefighter to reassure you that modern houses\u00a0seldom burn down, the fire chief\u00a0you want racing to your flaming home is one who\u00a0fears the worst and knows what to do when it happens. Chief central bankers should think like firefighters.<\/p>\n<p>Even while upping the housing risk, Poloz\u00a0played it down.<\/p>\n<p>&#8220;Overvaluation remains a concern,&#8221; he said in his prepared remarks. &#8220;But the probability that a sharp correction in house prices will occur remains low.&#8221;<\/p>\n<p>Even if that should happen, said Poloz and Wilkins, the systemic risk\u00a0\u2014 that is, the risk for the wider Canadian economy\u00a0\u2014 is reduced by the fact that the bad effects of\u00a0overvaluation will only hit some households in some regions. Vancouver and Toronto,\u00a0are &#8220;showing some strengths,&#8221; said Wilkins, but outside those two centres\u00a0prices are &#8220;easing quite nicely.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Should Stephen Poloz be more worried about the Canadian economy? Blandly reassuring, is Bank of Canada governor really ready if something bad happens? I hope Bank of Canada governor\u00a0Stephen\u00a0Poloz\u00a0was putting on a brave face. Despite a warning that risks had increased, mostly due to the property market,\u00a0the avuncular Poloz\u00a0was blandly reassuring when he met with [&hellip;]<\/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":[942,103,943],"class_list":["post-9037","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-stephen-poloz"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9037","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=9037"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9037\/revisions"}],"predecessor-version":[{"id":9038,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9037\/revisions\/9038"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}