In fighting inflation, the Bank of Canada might find hiking interest rates too blunt a tool
provides cancer treatment to patients with “sub-millimetre precision,” according to a recent Alberta Health Services report, by delivering “very high doses of radiation to very precise targets while avoiding or reducing the amount of radiation to those healthy tissues most sensitive to side effects.” One day, gruelling chemotherapy may be a thing of the past.
Alas, macroeconomists and central bankers are not so fortunate. While rising prices have rampaged through global economies since late 2021, the humbleremains the primary tool for controlling inflation in developed economies. This has not changed materially in decades, despite society modernizing around it, and it creates a number of issues.
First, there are sizable trade-offs. If interest rates were prescription medications, they would have a lengthy list of side effects: “May make mortgage payments unaffordable. May lead to recession. May cause unemployment. May hurt society’s poorest citizens the most.” Due to the lack of alternative policy tools, we have resigned ourselves to accepting these trade-offs. When the Bank of Canada raised its key
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation slows to 2.8% in Canada in June, within Bank of Canada's target rangeFood prices continue to push stubbornly higher and remain one of the largest contributors to inflation, Statistics Canada says From alicjawithaj
Read more »
The Bank of Canada’s inflation fight is the gift that keeps on giving for PoilievreThe Conservative Leader can expect an economy that makes many feel like life keeps getting less affordable will drive demand for political change
Read more »
Opinion: Strain on our electricity grids means Texas blackouts can happen in Canada as wellThis rush to energy cleantech is driven by a climate emergency that is moving faster than the evolution of the grid or consumer preference
Read more »
Home prices to end year 8.5% higher, despite Bank of Canada rate hikes: Royal LePageRoyal LePage has upgraded its forecast for Canadian home prices despite signs sales and prices may be cooling after rate hikes. Read on.
Read more »
Home prices to end year 8.5% higher, despite Bank of Canada rate hikes: Royal LePageRoyal LePage has upgraded its forecast for Canadian home prices despite signs sales and prices may be cooling after rate hikes. Read on.
Read more »
How immigration could be impacting the Bank of Canada's efforts to bring down inflationDemand created from a record influx of immigrants could be one factor keeping inflation higher for longer, some economists say. Read on.
Read more »