Bank of Canada's Poloz Calls 'Haphazard' Trade War His Biggest Concern

The video discusses the Bank of Canada's decision to maintain its policy rate amidst global monetary easing trends. Governor Stephen Poloz explains the rationale behind this decision, highlighting Canada's economic conditions, including housing and job growth, and the risks posed by global trade tensions. The discussion also covers the effectiveness of monetary and fiscal policy tools in addressing economic challenges, emphasizing the importance of fiscal policy in current conditions.

What is one reason the Bank of Canada decided to keep its policy rate unchanged?

• A decrease in consumption spending

• A significant drop in inflation

• A rebound in housing and job growth

• Pressure from international markets

What is a potential risk of maintaining the current policy rate according to the discussion?

• Stable international trade

• Increased financial vulnerabilities

• Immediate economic growth

• Decreased housing market activity

What is a major concern related to the ongoing trade war?

• Increased global cooperation

• Stable commodity prices

• Uncertainty affecting business investments

• Rapid economic recovery

What is a challenge faced by central banks in the current economic climate?

• Limited effectiveness of monetary policy

• Excessive room for policy maneuver

• Over-reliance on fiscal policy

• High inflation rates

How does fiscal policy compare to monetary policy in terms of power during the current economic situation?

• Fiscal policy is less powerful

• Monetary policy is more powerful

• Both are equally powerful

• Fiscal policy is more powerful

What is one benefit of using fiscal policy over monetary policy?

• It lowers inflation rates

• It decreases government spending

• It reduces fiscal vulnerabilities

• It increases financial vulnerabilities

What is the estimated macroeconomic effect of a $5 billion fiscal stimulus in Canada?

• Equivalent to a full-point insurance cut

• Equivalent to a half-point insurance cut

• Equivalent to a quarter-point insurance cut

• No significant effect