Speech (committee meeting)

{
    "time": "2021-04-13 18:10:00",
    "attribution": {
        "en": "Dr. Trevin Stratton",
        "fr": "M. Trevin Stratton"
    },
    "content": {
        "en": "<p data-HoCid=\"6636152\" data-originallang=\"en\">Certainly central banks in Canada and all over the world have pursued quantitative easing, and we saw how this tool can be used successfully to address economic downturns during the 2008 crisis. That being said, a lot of central bankers themselves would agree that there are limits to how much government debt central banks can buy.</p>\n<p data-HoCid=\"6636153\" data-originallang=\"en\">There are risks of inflation. Our economic growth projections have started to tilt toward upside risks, that the growth will actually be higher than was initially projected. I like the way it was framed in terms of putting the pieces together, because I really think we need to think about it holistically and systemically and macroprudentially. It's thinking about the combination of monetary policy, fiscal policy and potentially pent-up demand at the same time.</p>\n<p data-HoCid=\"6636154\" data-originallang=\"en\">Certainly there are risks for inflation if the desired amount of easing required is overestimated and too much money is created by the purchase of liquid assets.</p>\n<p data-HoCid=\"6636155\" data-originallang=\"en\">That being said, the bank has said that it will stop quantitative easing efforts once the economy has recovered, so it will be very important for it to keep an eye on that. The bank has said that if there is more inflationary pressure, then we can expect it to adjust policy accordingly.</p>",
        "fr": "<p data-HoCid=\"6636152\" data-originallang=\"en\">Il est certain que les banques centrales, au Canada et ailleurs dans le monde, ont poursuivi l'assouplissement quantitatif, et nous avons vu que cet outil peut donner d'excellents r\u00e9sultats en p\u00e9riode de ralentissement \u00e9conomique, comme pendant la crise de 2008. Cela dit, beaucoup de banques centrales reconnaissent qu'il y a des limites \u00e0 l'ampleur de la dette publique qu'elles peuvent racheter.</p>\n<p data-HoCid=\"6636153\" data-originallang=\"en\">Il y a des risques d'inflation. Nos projections de croissance \u00e9conomique indiquent des risques \u00e0 la hausse, c'est-\u00e0-dire que la croissance devrait \u00eatre plus forte que pr\u00e9vu au d\u00e9part. J'aime l'approche retenue, parce que nous devons r\u00e9fl\u00e9chir \u00e0 la situation en termes holistiques, syst\u00e9miques et macroprudentiels. Il faut envisager tout \u00e0 la fois la politique mon\u00e9taire, la politique budg\u00e9taire et la demande potentiellement refoul\u00e9e.</p>\n<p data-HoCid=\"6636154\" data-originallang=\"en\">Si l'on devait surestimer l'ampleur de l'assouplissement quantitatif et si l'achat d'actifs liquides devait cr\u00e9er trop d'argent, il y aurait un risque d'inflation.</p>\n<p data-HoCid=\"6636155\" data-originallang=\"en\">Cela \u00e9tant pos\u00e9, la Banque a indiqu\u00e9 son intention de mettre fin \u00e0 l'assouplissement quantitatif une fois que l'\u00e9conomie se sera r\u00e9tablie. Il sera donc tr\u00e8s important qu'elle garde un \u0153il l\u00e0-dessus. La Banque a dit en outre que nous devons nous attendre \u00e0 ce qu'elle ajuste sa politique d\u00e8s que les pressions inflationnistes se seront effac\u00e9es.</p>"
    },
    "url": "/committees/finance/43-2/33/dr-trevin-stratton-5/",
    "politician_url": null,
    "politician_membership_url": null,
    "procedural": false,
    "source_id": "11230790",
    "document_url": "/committees/finance/43-2/33/",
    "related": {
        "document_speeches_url": "/speeches/?document=%2Fcommittees%2Ffinance%2F43-2%2F33%2F"
    }
}