Wolf: Toronto Housing 'Crying Out' for Policy Action

The transcript discusses the unusual market reactions to a statement perceived as hawkish, focusing on the Toronto and Vancouver housing markets. It argues that these markets are not primarily a monetary policy issue due to slow economic growth and low inflation. The surge in housing prices is attributed to foreign investment, which is less sensitive to Canadian financing conditions, suggesting that monetary policy is not the right tool to address this issue.

What unusual market reaction is discussed in the first section?

• A significant drop in interest rates

• A combination of market decline and hawkish interpretation

• A decrease in foreign investments

• A surge in stock prices

Why does the speaker believe the housing market issue is not a monetary policy concern?

• Due to the slow economic growth and low inflation

• Due to the lack of foreign investment

• Because interest rates are already high

• Because the housing market is stable

What is the main driver of the housing market surge in Toronto and Vancouver according to the speaker?

• Government housing policies

• Foreign investment

• Monetary policy changes

• Local economic growth

How does the speaker view the role of monetary policy in addressing the housing market surge?

• As the primary tool

• As an ineffective tool

• As a necessary intervention

• As a temporary solution

What evidence does the speaker mention regarding foreign investment in the housing market?

• Evidence from local real estate agents

• No evidence is mentioned

• Circumstantial evidence

• Direct evidence from government reports