Bank Of Canada Chief Says Nationalist Policies Threaten Productivity Gains

Bank of Canada Chief Says Nationalist Policies Threaten Productivity Gains

Bank of Canada Governor Stephen Poloz during a speech on Thursday said nationalist and populist policies threaten to wipe out gains in productivity and global economic growth

TORONTO (Pakistan Point News / Sputnik - 13th December, 2019) Bank of Canada Governor Stephen Poloz during a speech on Thursday said nationalist and populist policies threaten to wipe out gains in productivity and global economic growth.

"Trade conflicts and the emergence of nationalist or populist policies, more generally, threaten to reverse some of the prior productivity gains that were made through globalization," Poloz said at the Empire Club of Canada in Toronto.

The Governor added that the uncertainty surrounding the future of trade policies and institutions, such as the World Trade Organization, forces businesses to rethink their investment strategies, putting economic growth in jeopardy. Poloz specifically pointed to the dismantling of certain supply-chain management systems that are later superseded by less efficient systems.

The Governor made the comments as part of a speech in which he outlined the Bank's vision for Canadian monetary policy in the upcoming year. Poloz focused primarily on inflation-targeting measures and digitalization.

The Governor expressed concern with rising household debt levels and acknowledged the economic hardship in some sectors and regions of the country, but underlined that the Canadian economy is operating "close to capacity."