Is Canada’s economy paying the price for Mark Carney’s poor decisions?

“High-profile central banker Mark Carney is taking it on the chin these days with blows landing from both sides of the Atlantic. The former Bank of Canada governor, who made international news last year by jumping ship to head the storied Bank of England, has been undergoing a serious grilling in London over the bank’s tame response to manipulation of foreign exchange rates. And in Canada, CIBC chief economist Avery Shenfeld has written a note suggesting Carney may have left his successor, Stephen Poloz, with an economy more damaged than it needed to be.” According to a Financial Post article by Julian Beltrame. Beltrame continues, “In Shenfeld’s view, Poloz’s puzzle about why Canadian exporters have not been able to take advantage of the expanding U.S. economy can be traced to decisions Carney made in 2009 and 2010 when Canada was coming out of recession. To boost growth, the Bank of Canada slashed interest rates that stimulated consumer spending and housing, and it worked. Canada’s economy came out of the slump quicker and stronger than any other country in the G7. But Shenfeld said Carney failed to check the appreciation of the Canadian dollar as foreign central banks dumped the U.S. currency and bought up loonies, at that time regarded as a safe haven.” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS  

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