Central bankers have taken on almost mythical status in recent years, as market players and economy watchers parse and splice every syllable of every official pronouncement for clues on what the bank will do next.
But they don’t have a magic wand. “One of the areas that may have developed since the crisis is this idea that central banks can fix every problem. They can’t,” Carolyn Wilkins, senior deputy governor of the Bank of Canada, said in an interview with Maclean’s magazine.
“Monetary policy works to affect demand, and it’s something that is needed to ensure low and stable prices. At the same time, it’s not the only game in town. I like the fact there is increased recognition that other policies, like fiscal policy, like structural policies, can be brought to bear to underpin Canada’s macro economy, and global economies in general.”
Read the full interview here.
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