Category Nick Rowe
Does Canada need a Fiscal Stimulus? – Discuss
My own view, for what it's worth, is that Canada does not need a fiscal stimulus right now, but there's a possibility it might need one soon, so the government should get everything ready to introduce one as quickly as possible, but not pull the trigger quite yet. My preferred fiscal stimulus would be a […]
Will Deficit Spending in fact be Money-Financed?
It's easy to say that money-financed increases in government spending should be used as a weapon of last resort, if the central bank runs out of ammunition as nominal interest rates fall to zero. But would government deficits in fact be money-financed? If the central bank targets the monetary base, the answer is trivial: if […]
A Useful Definition of “Deflation” – the Principle of Charity
Some prices are falling, some are falling quickly, and some are still rising. Whether we've got deflation, and how much deflation we've got, depends on what you include in the index, with what weights, and over what time period. Do we include asset prices for example? It depends on how you define the word. Now […]
Shooting Bears: Ammunition and Central Banks
[ Statistics Canada just announced the seasonally adjusted CPI fell by 0.5% from September to October. And it wasn’t just gas prices. Core was down too (not seasonally adjusted). That’s deflation (on a monthly basis).] Metaphors are like models, only with unclear responsibilities. Can the Bank of Canada (or the Fed, if you like) […]
Worthwhile Canadian Initiative 
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