In terms of credentials Mark Carney, former Governor of the Bank of Canada and current Governor of the Bank of England is arguably equipped to do the job. With a degree in economics from Harvard and a master’s degree and doctorate in economics from Oxford University together with a prestigious career history with Goldman Sachs and the Bank of Canada, this is a man who must surely know his stuff right?
Credited with protecting Canada from the worst effects of the late-2000’s financial crisis, his appointment at the Bank of England was a pragmatic move aimed at shielding the UK in exactly the same way.
So it’s rather worrying to say the least that reports are emerging from Canada’s banking community that suggest a property slowdown is imminent which could severely undermine the country’s economy.
Canada’s housing market makes a significant contribution to the economy, adding $1.7 trillion in economic activity since 2000 and $128 billion in 2013 alone. According to Canada’s Scotiabank, for every $1 spent on housing, around $1.50 worth of economic activity is generated through associated things like movers, building materials suppliers, heating and cooling systems, and household appliances and fixtures.
Surely any economist worth their …read more
Source: IPIN Live