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Ottawa's Spending is Making Bank of Canada's Job Harder

February 02, 2023

The Financial Post reports on John Manley voicing his concerns over the federal budget, saying he thinks federal fiscal policy is making it harder for the Bank of Canada to contain inflation. John says he agrees with David Dodge's report last week that concluded federal deficits are not sustainable for the next 10 years.

"I think (David Dodge and I) would both agree that at the moment at least, it appears that fiscal and monetary policy are not aligned, and the importance of that alignment is key. This is a bit like driving your car with one foot on the gas and the other on the brake generally, especially if there's slushy conditions under your tires. That's not a good plan for controlling the direction of your vehicle, not a good plan for controlling the direction of the economy either."

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  • Hon. John P. Manley P.C., O.C. Hon. John P. Manley P.C., O.C., Senior Business Advisor

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