An affordable housing crisis that is hurting the Canadian government’s popularity will take years to resolve, even if construction hits an 80-year high, Finance Minister Chrystia Freeland said on Saturday.

  • MooseGas@kbin.social
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    1 year ago

    I don’t understand. Why do they need to “take on the bank of canada”? As you said, Monetary policy isn’t the only tool. Monetary policy is set by the bank of canada. The bank of canada is doing exactly what it is supposed to.

    The government sets fiscal policy. Currently the government is in a spending frenzy, which is counter to the Monetary policy.

    • frostbiker
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      1 year ago

      Indeed. Central banks in developed nations act independently of the government for good reasons. What the GP is suggesting, which is government interference on the central bank to lower interest rates, is the scenario that causes developing nations like Turkey to experience runaway inflation. It is a terrible idea with plenty of historical precedents.