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monetary policy

The ex-Bank of Canada head says policymakers would have little wiggle room to stimulate the economy in a sharp downturn.
The long-awaited liftoff is here: the U.S. Federal Reserve has announced they are raising the Federal Funds Target Rate to 0.5 per cent. It is the first time in seven years the Fed has increased their trend-setting interest rate, which they cut to 0 per cent on December 16, 2008. Markets had widely anticipated the move, with 81 per cent calling for a hike today. As the U.S. is the largest economy in the world, any change it makes reverberates through the rest of the globe, impacting markets and even the cost of borrowing for other countries.
If you were to deposit $100 at a 0.5 per cent interest rate, for example, you would have $100.50 at the end of the year. A
OTTAWA ‚ÄĒ The Bank of Canada¬†is launching what it calls an ambitious¬†research¬†agenda to further explore¬†how other countries
OTTAWA ‚ÄĒ The federal finance minister raised eyebrows¬†last week by publicly sharing his¬†opinion¬†on¬†monetary policy¬†‚ÄĒ not
Growth is up, and it's looking like inflation is hard on its heels. The U.K. is charting this new course; we'd all do well to watch with interest, and to wish them well.
When international trade collapsed in 2009, the Canadian economy turned inward, and for a change, discovered a steady source of growth. That source is now tapped out, and economy-watchers have for some time turned their eyes back to trade. So far, the view has been uninspiring. Will Canadian trade carry growth forward, or is our hopeful gaze in for a big disappointment?
Leading indicators have gained more prominence in the post-crisis period, if only because the on-again, off-again economy has intensified scrutiny of shifts in momentum.If we are going to be months, or more realistically, years in unwinding extraordinary policy measures, which leading indicators can we rely on to point the way for the economy?
The bottom line? Fiscal policy is already a drag on growth, and will be, but perhaps not for as long as many now believe, given the speed with which fiscal dynamics can flip around. Monetary policy is generally expected to tighten, but in a way that does not undermine, but rather lend support to nascent economic growth.
Today the UK chancellor announced that the head role at the Bank of England would go to none other than the current Bank of Canada Governor, Mark Carney. The bet is that Carney can wave the same magic wand for the UK, though it's going to take more than a doctorate from Oxford to overcome the relatively larger challenges facing that country versus Canada, with its proximity to a troubled Eurozone.