In an op-ed for the Financial Post, Ivey Assistant Finance Professor Michael King reflected on Bank of Canada Governor Stephen Poloz’s recent speech to the Canada-United Kingdom Chamber of Commerce.
Poloz argued that higher financial market volatility is a return to normal and “represents a return to two-sided risks in financial markets.”
This statement sparked King to ask, “What exactly is normal for the BoC?,” “What purpose did an unexpected rate cut serve in the current environment?,” and “What signal is Governor Poloz sending to financial markets?”
Analyzing previous Bank of Canada governors, King delved into the concerns raised by Poloz.
