Grading John Crow
Article Abstract:
The tight monetary policy enforced by Bank of Canada Gov John Crow has decreased inflation to its lowest level in 20 years. Economist Ernest Stokes of the WEFA Group evaluated the costs incurred from Crow's monetary policy by comparing it to that of the US from 1988 to 1991. The costs are a staggering $30 billion in terms of total output lost and nearly $50 billion added to the government deficit. A total of 360,000 jobs were lost with a corresponding unemployment rate increase of 1.2%. Obviously, this is too high a price to pay for three years of 2% per year reduced inflation.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1992
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Till debt do us part
Article Abstract:
The rising personal indebtedness of Canadians should not be blamed for the slow economic recovery in the country. A high degree of personal indebtedness among citizens can even serve as a sign that a country's economy is moving forward. However, there is a kind of individual indebtedness, one that results from unwise spending, that is not good for the country. The kind that is prevalent now in Canada is the healthy one. It is an offshoot of the efforts of the populace to buy assets which they cannot afford if they depend only on their own resources.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1992
User Contributions:
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