“The world has clearly changed since the global financial crisis.” Mr. Poloz said bank economists have been struggling to adapt to a “new reality” since the crisis, making it much tougher to predict where the economy is headed. He acknowledged that the economy has “fallen short of our expectations.” Mr. Poloz and other top bank officials have acknowledged in recent speeches and statements that the economy has not picked up as rapidly as initially expected, with exports weak and inflation well below its 2-per-cent target. Earlier this month, deputy Governor John Murray admitted that the economy hasn’t been behaving as the bank’s models suggested it should. Inflation is stubbornly low, exports aren’t bouncing back with global demand and businesses have cash, but aren’t investing. Meanwhile, the housing market seems to defy gravity, even as all the usual warnings signs – including record-high debt levels and prices – are flashing red. “The macroeconomy has not been unfolding exactly as we had expected,” Mr. Murray said bluntly. ---------------------------------------------- Is Canada immune from the world crisis of capitalism? It would be foolish to think so, and the bourgeois and its best thinkers certainly dont think we are immune. They are, however, completely dumbfounded and at a loss for understanding the process and providing solutions. There is, however, one theoretical lens that has expected and understood these processes; Marxism. It also provides us with the only route out of the crisis that would not have a devastating effects on the lives of working people.
Posted on: Sat, 29 Mar 2014 19:10:33 +0000
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