Bank of Canada’s five year agreement with government to target inflation was to end this year. There were talks of whether BoC needs to adopt a new framework or make changes in the existing framework.
Recently, the govt. announced it plans to maintain status quo and let BoC target inflation at 2%. Christopher Ragan of CD Howe says it was a job well done.
Michael Bauer of FRBSF writes this nice short paper on the topic.
Policies impact yield curve but the impact varies across maturities. So some policies impact shorter end more than longer end.Some impact the mid tenors more. Bauer looks at the policies and their impact in recent times :
A British names John Cary wrote a treatise called An Essay on the State of England in 1695.
He laid out a powerful case for how England, through muscular government intervention in economic affairs, could create national wealth based on manufacturing. This production would be fueled by an imperialistic British Empire, which through its expansion would provide the needed raw materials.
The book proved extremely persuasive at home and also abroad after being translated into French, Italian, and German. Government leaders and policymakers in each of these countries were influenced by the Essay’s key idea that government should be a dominant player in helping shape economic development.
Sophus Reinert of HBS historian brings this to limelight in a book called Translating Empire: Emulation and the Origins of Political Economy.
There is a nice interview in which he explains the book:
Though it has been a few days since it got activated, I just forgot to mention it.
Here is the twitter link. Those who are irritated with the long posts, can follow the blog via twitter’s short posts..
https://www.intelligenteconomist.com/economics-blogs/
Mostly Economics 