The Canadian dollar is, in fact, a reserve currency, although not to the same degree as the US dollar. A point you, in fact, you make, undercutting your own initial claim.
I'd like to also add you're mischaracterizing Modern Monetary Theory (MMT). It's not a "Money for Nothing" crowd. It's a 'crowd' (to use your disparaging term) that exposes the mythology of debt and deficits and provides descriptions of what they actually are. You're creating a straw man, then attacking him.
Proponents of MMT agree that the "Central banks need to be able to focus on...keeping the value of our currency stable by controlling inflation." It's central to MMT. You might want revisit MMT, learn what it is, and then provide your commentary. MMT is not so much a 'theory' as it is a description of how macro economics works for countries, like Canada, which have their own sovereign currency, issue debt in that currency, have a central bank, and a robust economy.
By the way, if your analysis was correct, all the major democratic economies should be suffering massive inflation. None are. Evidence, as clear as it gets, there's something wrong with your analysis and commentary.
I remain somewhat skeptical of some of the tenets of MMT, However, I largely agree with your critique of the argument made here.
As an aside, I believe a bit of inflation may be just what the doctor ordered. Labour and Capital are wildly out of balance in this country (and others) and if we don't find that balance soon, I believe it puts our democracy at risk. Inflation may help. Sounds crazy, I know.
Eric, could you provide more detail about 'the tenets of MMT' you're 'somewhat skeptical' about? I ask because MMT is less a theory and more a description of how the monetary systems of countries like Canada actually work. So, what is MMT not getting right in its description of what's happening?
As for inflation, most central banks including Canada's have a policy of trying to get to an inflation rate of about 2%. Despite 'printing money' which people caution us will cause inflation, central banks are finding getting to 2% to be very difficult. Currently, the inflation rate in Canada is less than 1%. The inflation rate in Japan which has a debt that is 200% of GDP is about 0.2%. Canada's debt is 53% of GDP.
Thank you for explaining this distinct possibility so plainly. As I have opined on this site before, Trudeau's underlying governing ethos can be summed up by "I-want-dessert-without-eating-my-vegetables-ism." I don't have the macroeconomic background to come to my own understanding of how this policy approach applies to our national debt, but your article lays it out well. It seems that the actual spending power and quality of life of most Canadians may be yet another casualty of Trudeau's omnipotent fantasies.
This doesn't sound fun. If we become beholden to our debtors in this way, could other countries and/or the IMF begin to have control over parliament's agenda? It's one thing in the EU, but what would this look like in Canada?
Also, did anyone find it unsettling that Trudeau delivered last week's address clad in just white /black then used the word "covenant" to characterize the relationship between Canada's government and its citizens? The religious undertones seem intentional.
The Canadian dollar is, in fact, a reserve currency, although not to the same degree as the US dollar. A point you, in fact, you make, undercutting your own initial claim.
I'd like to also add you're mischaracterizing Modern Monetary Theory (MMT). It's not a "Money for Nothing" crowd. It's a 'crowd' (to use your disparaging term) that exposes the mythology of debt and deficits and provides descriptions of what they actually are. You're creating a straw man, then attacking him.
Proponents of MMT agree that the "Central banks need to be able to focus on...keeping the value of our currency stable by controlling inflation." It's central to MMT. You might want revisit MMT, learn what it is, and then provide your commentary. MMT is not so much a 'theory' as it is a description of how macro economics works for countries, like Canada, which have their own sovereign currency, issue debt in that currency, have a central bank, and a robust economy.
By the way, if your analysis was correct, all the major democratic economies should be suffering massive inflation. None are. Evidence, as clear as it gets, there's something wrong with your analysis and commentary.
I remain somewhat skeptical of some of the tenets of MMT, However, I largely agree with your critique of the argument made here.
As an aside, I believe a bit of inflation may be just what the doctor ordered. Labour and Capital are wildly out of balance in this country (and others) and if we don't find that balance soon, I believe it puts our democracy at risk. Inflation may help. Sounds crazy, I know.
Eric, could you provide more detail about 'the tenets of MMT' you're 'somewhat skeptical' about? I ask because MMT is less a theory and more a description of how the monetary systems of countries like Canada actually work. So, what is MMT not getting right in its description of what's happening?
As for inflation, most central banks including Canada's have a policy of trying to get to an inflation rate of about 2%. Despite 'printing money' which people caution us will cause inflation, central banks are finding getting to 2% to be very difficult. Currently, the inflation rate in Canada is less than 1%. The inflation rate in Japan which has a debt that is 200% of GDP is about 0.2%. Canada's debt is 53% of GDP.
Thank you for explaining this distinct possibility so plainly. As I have opined on this site before, Trudeau's underlying governing ethos can be summed up by "I-want-dessert-without-eating-my-vegetables-ism." I don't have the macroeconomic background to come to my own understanding of how this policy approach applies to our national debt, but your article lays it out well. It seems that the actual spending power and quality of life of most Canadians may be yet another casualty of Trudeau's omnipotent fantasies.
This doesn't sound fun. If we become beholden to our debtors in this way, could other countries and/or the IMF begin to have control over parliament's agenda? It's one thing in the EU, but what would this look like in Canada?
Canada's major 'lender' is the Bank of Canada. It's difficult to see how Canada could become beholden to its own Bank.
Also, did anyone find it unsettling that Trudeau delivered last week's address clad in just white /black then used the word "covenant" to characterize the relationship between Canada's government and its citizens? The religious undertones seem intentional.