The point of this article is to describe, with a few basic examples, how QE does (and does not) create money in Canada.
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How Governments Cause Inflation
Many people today believe that the creation of money “out of thin air” by central banks is one of the primary causes of
Continue readingInflation, Asset Prices, and the Policy Mechanism, Explained
To the casual observer it may seem absurd to suggest that the recent run-up in both inflation and asset prices is primarily a
Continue readingHow to Bake a Hot Potato (Bank of Canada Edition)
With the Bank of England recently serving notice to its commercial banking sector that negative interest rates could soon be on its way,
Continue readingThe Bank of Canada’s Big Nothingburger
There’s been a lot of commotion as of late over the rapid pace of the Bank of Canada’s current bond buying program, with concern mounting
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