The Canadian dollar has been falling. Inflation is down to the point where many countries are worried instead about deflation. The economy has been getting a boost as the cost of doing business and the cost of living both fell. Normally wed associate all these things with a cut in interest rates. Low inflation opens the door to cuts. But until today the cause has been falling oil prices. Now the Bank of Canada governor Stephen Poloz has doubled down on the stimulative effect with a surprise cut in rates. Once it kicks in, this double stimulation should perk up the Canadian economy. But like drinking beer with shots, it may also double the hangover. Don Pittis writes.
Posted on: Wed, 21 Jan 2015 23:30:17 +0000
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