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 role does foreign investment play in the housing market surge in Toronto and Vancouver?

How does the speaker describe monetary policy in relation to the housing market issues?