Central Banking

Central banking can be examined from a number of perspectives.  One of these perspectives is the targets that are set set and the tools that are used to accomplish these targets.  Rates of inflation and employment are frequently said to be targets.  The setting of interests rates, through various mechanisms, is said to be a tool of central banking.

To my knowledge, the People's Party of Canada takes no official policy on the setting of interest rates in Canada.  Recently however, Maxime Bernier did produce a video on Bank of Canada targets for the rate of inflation.

Maxime Bernier on Canadian Inflation Rate Targets

 

In recent weeks, Donald Trump has been a vocal critic of US Federal Reserve policy on interest rates, arguing that Federal Reserve Chairman Jerome Powell should not have hiked rates, as he did.  Powell recently caved under this pressure and is now aggressively cutting interest rates in the USA.  Some have speculated that Trump anticipates a recession and wants to get out in front of the issue, to make sure that any blame eventually lands on Powell.

Many people in Canada also hold the belief that we are heading for some sort of monetary crisis, precipitated by rampant government spending and debt issuance.  This issue has been on the back burner for several decades now and timing is always notoriously difficult to predict.

Should such a crisis materialize, Canada can look to its past for guidance.  Gerald Gratton McGeer , the Canadian MP for Vancouver-Burrard from 1935-1945, took up this issue during the Great Depression.   His views remain as relevant today as they were over 80 years ago.

Within the Canadian context, the most concise explanation of this that I have found on the internet to date is here:

Gerald Gratton McGeer Examines Graham Ford Towers

This is yet another lens through which the topic of central banking can be examined.

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Robert (Doug) Bebb - 2019 People's Party Candidate