Monday, April 20, 2009

BoC Announcement Tomorrow

I think that I am with the majority of economists when I say that I do not believe that cutting rates tomorrow will do any good. Bank lending tightness is still at a record high even after over a year of monetary easing. Clearly something different needs to be tried in order to alleviate constraints on lending and that something appears to be quantitative easing.

How should the BoC go about implementing a quantitative easing program? I'll outsource that part to Pimco's Ed Devlin.

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