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David Dodge Presents His Views on Interest Rates and the Economy

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December 2, 2016

David Dodge, former Governor of the Bank of Canada, presented his views on  the appropriate balance of monetary and fiscal policies for a slow-growth global economy on December 2nd at a C.D. Howe Institute luncheon.  In his remarks, entitled “The Role of Macro-Economic Policies in an Era of Global Economic Stagnation,” Dodge noted: “We are stuck in a low-growth global economy characterized by excess supply and low inflation, a low natural interest rate, low productivity growth, and current account imbalances.”

What to do?

Dodge concluded: “At the present time, both price and financial stability would be better served by somewhat higher policy interest rates – rates that would not imply a sacrifice of employment and growth if – and this is a big if – fiscal policy were more expansionary.”

Author(s):

David Dodge, Former Governor, Bank of Canada; Senior Advisor, Bennett Jones LLP
David Dodge

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© 2014 C.D. Howe Institute. All Rights Reserved.

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© 2014 C.D. Howe Institute. All Rights Reserved.