- First there was ZIRP, then there was QE, and now there's the scrapping of decades-old inflation targets. Are we getting the message yet (bond markets over the past month look like they have)?
- Newish Bank of Canada Governor Stephen Poloz already surprised markets with a rate cut in January, and now - according to a Bloomberg article - is considering raising the bank's 2% inflation target. The argument in favor: Canada's growth potential has been cut by slowing global demand, meaning a high chance interest rates get stuck near zero, thus limiting the central bank's options in the even of another crisis.
- The argument against in a nutshell: The bank would be institutionalizing stagflation.
- ETFs: FXC, EWC, CNDA, EWCS, QCAN, FCAN