Bank of Canada Governor Poloz
- Current economic models performing well, but recent experience points to shortcomings that need to be addressed
- Current major models provide little insight into forces behind financial crisis or behavior since crisis
- Investing in next generation of economic models is one of bank's top priorities
- As models deliver only "approximation of the truth", monetary policy is not a mechanical exercise
- Bank begins deliberations with policy path recommended by models but is always mindful of the uncertainties
- Aftermath of financial crisis has left Canadian economy with persistent excess capacity, inflation in lower half of target range
- Reiterates inflation will be sustainably at target around mid-2018
Headlines via Reuters. I bolded the comments applicable to his outlook and policy. Not really much of either here. Poloz was speaking at the University of Alberta's business school. As you can see from the remarks, the speech was focused on models.
Next he week will follow up with a speech on bottles, and the following week on combining the two at the cluuuub.
