\n<\/p>\n
Canada Growth fund, though, will take some ‘heavy lifting,’ said former Bank of Canada governor <\/p>\n
Publishing date:<\/p>\n
Apr 14, 2022<\/span> \u00a0\u2022\u00a0 4\u00a0hours ago<\/span> \u00a0\u2022\u00a0 4 minute read<\/span> \u00a0\u2022\u00a0 <\/svg><\/span> 19 Comments <\/span> <\/div><\/div>\n<\/picture>Stephen Poloz, the former Bank of Canada governor, talked to the Financial Post’s Larysa Harapyn about the federal budget. <\/span> Photo by REUTERS\/Chris Helgren\/File Photo<\/span> <\/figcaption><\/figure>\n<\/header>\n\nArticle content<\/h2>\nStephen Poloz, the former Bank of Canada governor, was pleasantly surprised by Finance Minister Chrystia Freeland\u2019s new financial plan.<\/p>\n<\/section>\n\n\nAdvertisement 2<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cThe budget exceeded many people\u2019s expectations,\u201d Poloz, who retired as governor in 2020, said in an interview with the Financial Post\u2019s Larysa Harapyn this week.<\/p>\n\u201cOf the fiscal room that was on the table, only about half of it was deployed in new programs. The rest was geared towards reducing the debt-to-GDP ratio through time a little faster than it otherwise would, which I think is a bit of a success given the political situation in which we find ourselves in.\u201d<\/p>\nPause on that last thought. Poloz isn\u2019t keen on the political class these days, so a kind word is noteworthy. It isn\u2019t personal; he has said a politician\u2019s job has become one of the toughest occupations out there. But that degree of difficulty is the problem. He argues in his book, The New Age of Uncertainty<\/em>, that modern politics is incapable of big things because practitioners have become devoted to polarized vote banks.<\/p>\n<\/section>\n\n\nAdvertisement 3<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cI believe the coming tectonic stresses will prove too much for the capacity of existing fiscal and monetary stabilization tools,\u201d he wrote. Therefore, given the \u201cpolitical challenges\u201d that will impede an overhaul of existing policy, \u201cpolicy-makers will not be able to absorb all of the increase in risks that the tectonic forces will deliver.\u201d<\/p>\nPoloz finished his book last year. His outlook was informed by the presidency of Donald Trump in the United States and an embrace of \u201cvote efficiency\u201d in Canada, where Prime Minister Justin Trudeau\u2019s Liberals formed successive minority governments despite losing the popular vote. Little positive was achieved by policy-makers in either country. The kind of compromise required to bring about anything more than incremental change was incongruous with electoral strategy.<\/p>\n<\/section>\n\n\nAdvertisement 4<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nTeam Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\nExecutives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\nTo be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n\n\nAdvertisement 5<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
Stephen Poloz, the former Bank of Canada governor, was pleasantly surprised by Finance Minister Chrystia Freeland\u2019s new financial plan.<\/p>\n<\/section>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cThe budget exceeded many people\u2019s expectations,\u201d Poloz, who retired as governor in 2020, said in an interview with the Financial Post\u2019s Larysa Harapyn this week.<\/p>\n\u201cOf the fiscal room that was on the table, only about half of it was deployed in new programs. The rest was geared towards reducing the debt-to-GDP ratio through time a little faster than it otherwise would, which I think is a bit of a success given the political situation in which we find ourselves in.\u201d<\/p>\nPause on that last thought. Poloz isn\u2019t keen on the political class these days, so a kind word is noteworthy. It isn\u2019t personal; he has said a politician\u2019s job has become one of the toughest occupations out there. But that degree of difficulty is the problem. He argues in his book, The New Age of Uncertainty<\/em>, that modern politics is incapable of big things because practitioners have become devoted to polarized vote banks.<\/p>\n<\/section>\n\n\nAdvertisement 3<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cI believe the coming tectonic stresses will prove too much for the capacity of existing fiscal and monetary stabilization tools,\u201d he wrote. Therefore, given the \u201cpolitical challenges\u201d that will impede an overhaul of existing policy, \u201cpolicy-makers will not be able to absorb all of the increase in risks that the tectonic forces will deliver.\u201d<\/p>\nPoloz finished his book last year. His outlook was informed by the presidency of Donald Trump in the United States and an embrace of \u201cvote efficiency\u201d in Canada, where Prime Minister Justin Trudeau\u2019s Liberals formed successive minority governments despite losing the popular vote. Little positive was achieved by policy-makers in either country. The kind of compromise required to bring about anything more than incremental change was incongruous with electoral strategy.<\/p>\n<\/section>\n\n\nAdvertisement 4<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nTeam Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\nExecutives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\nTo be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n\n\nAdvertisement 5<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
\u201cThe budget exceeded many people\u2019s expectations,\u201d Poloz, who retired as governor in 2020, said in an interview with the Financial Post\u2019s Larysa Harapyn this week.<\/p>\n
\u201cOf the fiscal room that was on the table, only about half of it was deployed in new programs. The rest was geared towards reducing the debt-to-GDP ratio through time a little faster than it otherwise would, which I think is a bit of a success given the political situation in which we find ourselves in.\u201d<\/p>\n
Pause on that last thought. Poloz isn\u2019t keen on the political class these days, so a kind word is noteworthy. It isn\u2019t personal; he has said a politician\u2019s job has become one of the toughest occupations out there. But that degree of difficulty is the problem. He argues in his book, The New Age of Uncertainty<\/em>, that modern politics is incapable of big things because practitioners have become devoted to polarized vote banks.<\/p>\n<\/section>\n\n\nAdvertisement 3<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cI believe the coming tectonic stresses will prove too much for the capacity of existing fiscal and monetary stabilization tools,\u201d he wrote. Therefore, given the \u201cpolitical challenges\u201d that will impede an overhaul of existing policy, \u201cpolicy-makers will not be able to absorb all of the increase in risks that the tectonic forces will deliver.\u201d<\/p>\nPoloz finished his book last year. His outlook was informed by the presidency of Donald Trump in the United States and an embrace of \u201cvote efficiency\u201d in Canada, where Prime Minister Justin Trudeau\u2019s Liberals formed successive minority governments despite losing the popular vote. Little positive was achieved by policy-makers in either country. The kind of compromise required to bring about anything more than incremental change was incongruous with electoral strategy.<\/p>\n<\/section>\n\n\nAdvertisement 4<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nTeam Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\nExecutives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\nTo be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n\n\nAdvertisement 5<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cI believe the coming tectonic stresses will prove too much for the capacity of existing fiscal and monetary stabilization tools,\u201d he wrote. Therefore, given the \u201cpolitical challenges\u201d that will impede an overhaul of existing policy, \u201cpolicy-makers will not be able to absorb all of the increase in risks that the tectonic forces will deliver.\u201d<\/p>\nPoloz finished his book last year. His outlook was informed by the presidency of Donald Trump in the United States and an embrace of \u201cvote efficiency\u201d in Canada, where Prime Minister Justin Trudeau\u2019s Liberals formed successive minority governments despite losing the popular vote. Little positive was achieved by policy-makers in either country. The kind of compromise required to bring about anything more than incremental change was incongruous with electoral strategy.<\/p>\n<\/section>\n\n\nAdvertisement 4<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nTeam Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\nExecutives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\nTo be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n\n\nAdvertisement 5<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
\u201cI believe the coming tectonic stresses will prove too much for the capacity of existing fiscal and monetary stabilization tools,\u201d he wrote. Therefore, given the \u201cpolitical challenges\u201d that will impede an overhaul of existing policy, \u201cpolicy-makers will not be able to absorb all of the increase in risks that the tectonic forces will deliver.\u201d<\/p>\n
Poloz finished his book last year. His outlook was informed by the presidency of Donald Trump in the United States and an embrace of \u201cvote efficiency\u201d in Canada, where Prime Minister Justin Trudeau\u2019s Liberals formed successive minority governments despite losing the popular vote. Little positive was achieved by policy-makers in either country. The kind of compromise required to bring about anything more than incremental change was incongruous with electoral strategy.<\/p>\n<\/section>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nTeam Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\nExecutives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\nTo be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n\n\nAdvertisement 5<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
Team Trudeau will need more than one relatively well-received budget to restore its credibility with the business community. But maybe Russia\u2019s invasion of Ukraine has brought a new level of seriousness. Trudeau\u2019s power-sharing agreement with the New Democratic Party promises several years of stability, which would at least partially offset the political risk that has weighed on investment in recent years.<\/p>\n
Executives and investors might dislike some of the terms of the arrangement between Trudeau and NDP leader Jagmeet Singh, but at least they can base their spending plans on the assumption there won\u2019t be a disruptive federal election every couple of years.<\/p>\n
To be sure, the new budget is far from perfect. If the most pressing short-term issue is inflation, then Freeland probably should have used more of her revenue windfall to narrow the deficit. Her act of relative restraint \u201cdoesn\u2019t change the fact that this year and next year, we\u2019re running fairly important deficits, more than one per cent of GDP, closer to two per cent of GDP, at a time when the economy is fully engaged, more than fully perhaps, in excess demand already,\u201d Poloz said.<\/p>\n<\/section>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\nStill, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n\n\nAdvertisement 6<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
\u201cTo the extent the government actually gets that spending out the door, it\u2019s adding to those (inflationary) pressures on the economy this year and next. It would be better if that wasn\u2019t the case.\u201d<\/p>\n
Still, the former governor acknowledged that some of Freeland\u2019s policies could help offset inflation by making more workers available to fill an unusually large number of vacancies. For example, the national daycare program should boost the labour participation rates of women. Poloz also said the federal government\u2019s pledge to speed up the processing of visa applications and the overhaul of the Temporary Foreign Workers program will help with a labour shortage that threatens to stoke inflation by putting upward pressure on wages.<\/p>\n<\/section>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\n\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
\u201cInflation risk is a demand and a supply issue,\u201d he said. \u201cThese are the folks that will take up the excess vacancies we have in the labour market. That will take some of the inflation pressure out of the system.\u201d<\/p>\n <\/p>\n\n <\/picture>\n Stephen Poloz predicts inflation will slow quickly over the next 12 months <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz: The economy is about to get even more unpredictable <\/span> <\/h3>\n<\/li>\n <\/picture>\n Stephen Poloz explains why volatility will be trending up for the next decade <\/span> <\/h3>\n<\/li>\n<\/ol>\n <\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
<\/section>\nSomething else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\nPoloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n\n\nAdvertisement 7<\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
Something else that would offset inflation is stronger productivity. Freeland\u2019s answer is the Canada Growth Fund, which she intends to seed with $15 billion for a team of professional investors to use to cajole private investors into making big bets on Canada.<\/p>\n
Poloz, who was running Export Development Canada when he was appointed Bank of Canada governor, said the scheme could work, although only if the politicians ultimately get out of the way. Trump\u2019s protectionist policies reoriented North American investment to the U.S., as companies concluded it was the only way to avoid tariffs on imports from Canada or Mexico. Now, those companies are thinking about where they will expand to take advantage of post-pandemic growth.<\/p>\n<\/section>\n
This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div>\n\nArticle content<\/h2>\nThey might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\nThe Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
They might need the kind of \u201ccatalyst\u201d that a $15-billion fund could provide, Poloz said. Still, \u201cthat\u2019s going to take some heavy lifting,\u201d he said. \u201cYou can\u2019t just put that up in the window and expect everything to happen. It will require a lot of dialogue and you\u2019ve got to make sure that companies not only have that, but have clarity that if they make a 10- or a 20- or a 30-year investment today, it will still be valid 10 years from now.\u201d<\/p>\n
The Liberal-NDP deal should bring at least a few years of clarity. Inflation will become less scary if the country\u2019s business and political leaders use that time wisely.<\/p>\n
\u2022 Email: kcarmichael@postmedia.com | Twitter: CarmichaelKevin<\/a><\/em><\/p>\n<\/section>\n\nShare this article in your social network<\/h2>\n<\/section>\n\n\n\nAdvertisement <\/h2>\n\n\n\n\n This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n\n<\/p>\n\nFinancial Post Top Stories<\/h2>\nSign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n\nThanks for signing up!<\/h3>\nA welcome email is on its way. If you don’t see it, please check your junk folder.<\/p>\nThe next issue of Financial Post Top Stories will soon be in your inbox.<\/p>\n<\/p><\/div>\n We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n
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