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The Bank of Canada Needs to Nurture those Green Shoots of Recovery

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Author Info
David Laidler (C.D. Howe Institute)

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Abstract

To encourage new growth in the Canadian economy, the Bank of Canada should be actively irrigating financial markets with a growing money supply. Recovery needs support from the continued credibility of the Bank’s 2 percent inflation target – but there are signs that this credibility is fading over short time horizons, dampening low interest rates’ positive effect on spending.

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Publisher Info
Paper provided by C.D. Howe Institute in its series e-briefs with number 77.

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Length: 5 pages
Date of creation: Apr 2009
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Publication status: Published on the C.D. Howe Institute website, April 2009
Handle: RePEc:cdh:ebrief:77

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Related research
Keywords: monetary policy; Bank of Canada; money supply growth;

Find related papers by JEL classification:
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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This page was last updated on 2009-11-3.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.