Bank of Canada is only following the current leading economic theories such as Countercyclical Monetary Policy . The issue is that economic theories change with technology and advancements. There’s an argument to be made that the prevailing theories from the early 2000s no longer apply, but what is the alternative?
The government has other levers on inflation that the BOC does not. If they were using them, there would be less pressure on the BOC to use their one lever. The government has a choice of levers that impact different people differently, and could help spread out the pain, like corporate tax rates, and passing laws that effect property tax calculations for investment properties.
Governments. Both federal and provincial governments can manage corporate tax rates, and both provincial and municipal governments can manage property tax rates.
But each of these governments serve the will of the people, and all three governments ultimately serve the very same people. Good luck convincing the people that they should willing choose to pay higher taxes.
Bank of Canada is only following the current leading economic theories such as Countercyclical Monetary Policy . The issue is that economic theories change with technology and advancements. There’s an argument to be made that the prevailing theories from the early 2000s no longer apply, but what is the alternative?
The government has other levers on inflation that the BOC does not. If they were using them, there would be less pressure on the BOC to use their one lever. The government has a choice of levers that impact different people differently, and could help spread out the pain, like corporate tax rates, and passing laws that effect property tax calculations for investment properties.
Governments. Both federal and provincial governments can manage corporate tax rates, and both provincial and municipal governments can manage property tax rates.
But each of these governments serve the will of the people, and all three governments ultimately serve the very same people. Good luck convincing the people that they should willing choose to pay higher taxes.