Speech (committee meeting)

{
    "time": "2022-03-28 12:35:00",
    "attribution": {
        "en": "Mr. Hilliard MacBeth",
        "fr": "M. Hilliard MacBeth"
    },
    "content": {
        "en": "<p data-HoCid=\"7070013\" data-originallang=\"en\">That's a great question. Nobody knows the answer to that question.</p>\n<p data-HoCid=\"7070014\" data-originallang=\"en\">I can tell you that in the late seventies, when they brought in a new chair of the fed in the U.S., Paul Volcker started raising rates when they were at 11% and inflation was around 10%. For the next two and a half years, he raised rates until they hit 20%, and then the inflation started to come back down. For various reasons, as I mentioned in my statement and in answers to questions, raising rates does not have the initial effect of bringing inflation down. In fact, it pushes inflation even higher. </p>\n<p data-HoCid=\"7070015\" data-originallang=\"en\">Do the central banks\u2014the Bank of Canada, the Federal Reserve, the Bank of England and the European Central Bank\u2014have the backbone to continue raising rates when house prices start falling, stock market prices start falling and inflation keeps going higher? We're going to find out, I think, and I don't know if they do.</p>",
        "fr": "<p data-HoCid=\"7070013\" data-originallang=\"en\">C'est une excellente question. Personne ne conna\u00eet la r\u00e9ponse.</p>\n<p data-HoCid=\"7070014\" data-originallang=\"en\">Je peux vous dire qu'\u00e0 la fin des ann\u00e9es 1970, apr\u00e8s sa nomination \u00e0 la t\u00eate de la R\u00e9serve f\u00e9d\u00e9rale am\u00e9ricaine, Paul Volcker a commenc\u00e9 \u00e0 hausser le taux d'int\u00e9r\u00eat, qui \u00e9tait alors \u00e0 11 % et l'inflation \u00e0 environ 10 %. Pendant les deux ann\u00e9es et demie qui ont suivi, il a port\u00e9 le taux jusqu'\u00e0 20 %, apr\u00e8s quoi l'inflation a commenc\u00e9 \u00e0 fl\u00e9chir. Pour diverses raisons, comme je l'ai mentionn\u00e9 dans ma d\u00e9claration et en r\u00e9ponse aux questions, la hausse des taux d'int\u00e9r\u00eat n'a pas pour effet initial de faire baisser l'inflation. En fait, elle a l'effet contraire.</p>\n<p data-HoCid=\"7070015\" data-originallang=\"en\">Les banques centrales \u2014 la Banque du Canada, la R\u00e9serve f\u00e9d\u00e9rale am\u00e9ricaine, la Banque d'Angleterre et la Banque centrale europ\u00e9enne \u2014 auront-elles assez de c\u0153ur au ventre pour continuer de hausser les taux d'int\u00e9r\u00eat alors que les prix des maisons commencent \u00e0 baisser, que les cours boursiers se mettent \u00e0 chuter et que l'inflation demeure en hausse? Nous allons le d\u00e9couvrir, je crois, et je ne sais pas si c'est le cas.</p>"
    },
    "url": "/committees/finance/44-1/34/hilliard-macbeth-13/",
    "politician_url": null,
    "politician_membership_url": null,
    "procedural": false,
    "source_id": "11589681",
    "document_url": "/committees/finance/44-1/34/",
    "related": {
        "document_speeches_url": "/speeches/?document=%2Fcommittees%2Ffinance%2F44-1%2F34%2F"
    }
}