INFLATION OF 2022: WHY CANADA’S CENTRAL BANK IS IN A FIX
The present commentary discusses how past bad policy choices of Canada’s central bank have tied its hands to manage the inflation crisis of 2022. The price level has been disconnected from the realities of the economic conditions prevailing in the macroeconomy. Given the low-price level, the bank has been lowering its policy rate since the 1990s. And now it finds itself stuck in a low-rate trap that it can’t increase the rate even if current inflationary pressure demands so. If it increases its policy rate to manage the inflation crisis, it may create another crisis(es) in the process – asset crisis, debt crisis, and/or systemic crisis. What to choose, whether inflation crisis or other(s)? It appears to be in a fix.
Inflation Targeting in Canada Re-evaluated
The present study re-evaluates the inflation-targeting monetary framework in Canada with a broader perspective by analyzing its impact on the real economy, macro economy, and financial economy rather than typically the performance of the inflation rate alone. It establishes that under this framework: Canada’s real economy has seen lower rates of domestic investment and GDP growth besides higher rates of unemployment; macro economy has experienced low inflation by virtue of cheap imports
Monetary Policy in Canada: Time for Change
Present study questions the role of monetary policy in general and inflation targeting in particular with the help of important issues related to it and concludes that it is high time for a change. An irony of the inflation targeting is that price stability has amazingly been achieved in Canada simultaneously with an over-leveraged financial system and an over-exposed economy to the debt and assets. And also, the low policy rate regime under the framework has not been able to stop the investment from decline and the real economy from stagnation.
Structural Racism in Multicultural Canada
The present study looks into racism in multicultural Canada. It examines the factors which have been making the nation increasingly multicultural demographically. It analyses the education, employment, income, and poverty outcomes and finds how racism has played a huge role in the performance of these structural factors. The aboriginal population seems to pay the highest price for their aboriginal identity in terms of the worst education, employment, income, and poverty outcomes. Then follows the visible minorities who are observed to pay the price for their color and (non-Caucasian) race in terms of worse employment, income, and poverty outcomes; this is despite their better performance at university level education than all other population groups. The vicious trap of lower outcomes for the racial population is no accident; it can relate to deliberate, unfair, and discriminatory actions of the white majority population who generally own and control Canada’s institutions.
Pay Gap between CEOs and Workers in Canadian Industry, 2019
2019 survey examines the pay gap between the CEOs and workers in the Canadian industry as a whole and also in its different sectors.
Inflation Targeting Needs Re-examination in the Developed Economies
This commentary investigates how the targeted inflation rate has been achieved successfully amidst stagnant economic growth, declining domestic manufacturing, boiling asset economy, and piling financial vulnerabilities in the developed economies. It re-examines the modus operandi of the inflation targeting as an integral part of the management of the macroeconomy in these economies.
Neither Strongman nor Strongman Politics is New, Only Avatar is Different.
Where there is a massive discontentment in the general population, there is a way to popular politics. A strongman capitalizes those popular sentiments and takes charge as a warrior of the people. Is it a win of that strongman and his popular politics? Not so, it is in fact a defeat of the past political leaderships that has let built up the social discontent and gave a chance to a so-called strongman. Like it or not, current wave of strongman politics is slowly engulfing all-over the world.
Superpower War of the 21st Century – Declining America and Fading Capitalism Versus Rising China and Shining Communism!
Historically, a transition from one superpower to another has involved a war. If history repeats itself, should the recent US trade war be assumed as a last phase of the superpower transition from the US to China? Last transition took place during the WWI from then superpower the UK to the USA. During war the US became the biggest wartime trade and finance supplier for the UK, and it was in 1916 when US output outpaced that of the entire British empire.