Summary: High inflation is here to stay for awhile due to failed agendas of government. Mitigating climate change is very important. The mitigation should be done through better policy including how to best support cheap energy costs. The focus should also be on policies and programs that support the green and circular economy. Canada has lost it ways when it comes to encouraging innovation within the private and public sector. Trudeau policies have been a failure! Liberals around the world should revisiting their so-called carbon pricing schemes. There is a better approach to protecting the environment while growing the economy in a sustainable way. https://www.slideshare.net/paulyoungcga/how-the-public-and-private-sector-can-better-supoort-the-circular-and-green-economies Housing costs continue to rise! https://www.ctvnews.ca/business/interest-rate-hike-won-t-cool-housing-say-experts-1.5802515 1. Interest rates - https://wowa.ca/bank-of-canada-interest-rate 2. First interest hike since 2018 - https://www.bnnbloomberg.ca/bank-of-canada-hikes-rates-for-first-time-since-2018-1.1731177 3. Inflation - https://globalnews.ca/news/8654004/canada-interest-rate-hike-march-2022/ 4. Inflation - https://www.bnnbloomberg.ca/boc-will-have-to-kill-the-economy-to-crush-inflation-rosenberg-1.1731579 5. UBI - https://www.ubiworks.ca/howtopay 6. Green inflation - https://www.advisor.ca/investments/market-insights/green-energy-low-supply-to-drive-copper-prices/ 7. Inflation - https://www.bloomberg.com/opinion/articles/2022-03-02/biden-state-of-union-proposals-would-do-little-to-curb-inflation 8. Energy - https://www.tester.senate.gov/?p=press_release&id=8934 9. Oil - https://www.jwnenergy.com/article/2022/3/2/mayhem-reigns-in-oil-markets-as-traders-avoid-russ/ 10. LNG - https://www.bnnbloomberg.ca/threat-to-europe-gas-supply-bolsters-push-on-new-u-s-lng-plants-1.1731478 11. Food security - https://www.newsweek.com/war-ukraine-global-food-security-crisis-opinion-1683791 12. Housing affordability - https://betterdwelling.com/canadian-housing-affordability-hits-the-worst-level-since-the-last-bubble-nbf/ 13. Commodities - https://www.bloomberg.com/markets/commodities

1. WHAT IS MONETARY
POLICY AND WHY IS
IT IMPORTANT TO
GOVERNMENT
Paul Young CPA CGA
March 3, 2022

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. AGENDA
• What is monetary policies?
• Canada and Inflation
• Canada and Producer Price
• Housing
• Cost of Living
• Household Debt
• GDP
• Fiscal Management
• Innovation
• Productivity and Competitiveness

4. WHAT IS MONETARY POLICY
Source - https://www.investopedia.com/terms/m/monetarypolicy.asp

5. BANK OF CANADA / MONETARY
POLICIES
BOC and BNS.pdf
Source: Scotiabank Economics
• There are issues with GDP: a) Productivity
b) FDI outflow c) Lack of innovation d)
Higher Commodities e) government
deficits and taxes
• About 40% of the job vacancies are with
jobs that pay less than the average wage
• Size of household debt continues to be an
issue
• Lack of affordable housing options
• Global Trade and protectionism
Source -
https://www.slideshare.net/paulyoungcga/bmo-
7-reasons-to-be-exciting-about-the-canadian-
economy

6. INTEREST RATES
Source – Scotiabank and BMO - https://economics.bmo.com/en/publications/detail/8228b7c6-6610-4e9e-9f18-
1d0b5fbfd65a/
BNS_Monetary.pdf
BMO_Monetary
Policies.pdf

7. BMO – CONSUMER PRICE INDEX
U.S. Consumer
Inflation 'Entrenched'.pdf
Source -
https://economics.bmo.com/en/publications/detail/
2cb89f8c-5f2c-4cd1-b642-550ea67076e2/
Source – https://economics.bmo.com/en/publications/detail/e4802293-
87aa-4438-80bd-313b8f78f2dc/

8. CONSUMER PRICE INDEX

9. INDUSTRIAL PRODUCE PRICE INDEX Raw Material and
Purchase Price Index - December 2

10. AVERAGE HOUSING PRICE INCLUDING KEY
CITIES
Summary:
Average housing price in Canada is close to 800K. (Link - https://www.slideshare.net/paulyoungcga/revised-housing-and-
homelessness-for-canada-and-the-world
Mortgage debt continues to increase at a faster pace than inflation
People continue to invest into their homes - https://www.furnituretoday.com/research-and-analysis/houzz-report-gives-
outlook-on-q1-2022-home-renovation-design/
Construction prices continue to rise - https://ontarioconstructionnews.com/construction-industry-facing-perfect-storm-of-
rising-costs-altus-group/

11. SUMMARY - INFLATION
Canada’s January 2022 inflation of 5.1% is the highest since 1991. You can bet the @JustinTrudeau will blame the
truckers protest for the high inflation and not his carbon tax or high tax or excessive regulation or overspending or
other areas of policies!
https://www.slideshare.net/paulyoungcga/preliminary-cost-of-living-canada-january-2022

12. HOUSEHOLD DEBT
National Banque -
Canada - 202112.pdf

13. DEBT LEVELS
AND
CANADIANS
Source -
https://mnpdebt.ca/en/reso
urces/mnp-consumer-debt-
index

14. BOC
CONCERNS
https://www.bankofcanada.ca/2
019/12/big-issues-ahead-the-
banks-2020-vision/

15. INNOVATION
Summary:
Justin Trudeau told the world in 2015 that Canada should be know for its resourcefulness not its resources -
https://www.macleans.ca/news/canada/what-justin-trudeau-plans-to-tell-davos/
Trudeau and his government focus has been setting up more and more agencies to manage innovation funds. Many of
these agencies have liberal running them - https://financialpost.com/technology/liberals-supercluster-program-falling-
short-of-promised-jobs-economic-growth and https://www.slideshare.net/paulyoungcga/policy-review-innovation-
and-scientific-research-rd-canada
The goods-producing sector since Trudeau took office or about 6% of all the net new jobs.
https://torontosun.com/opinion/columnists/gunter-the-public-sector-fared-very-well-during-lockdown or
https://www.slideshare.net/paulyoungcga/employment-and-labour-market-canada-january-2022
I have also been saying for years that all colleges and universities should be innovation. The role of government is support
innovation through proper policies and not throw money at the symptoms!

16. PRODUCTIVITY
Did article did not age well - https://www.cbc.ca/news/politics/canada-election-2015-liberals-infrastructure-
deficits-1.3205535
Our economy needs investment to create growth," he said. "Our plan features three years of historic
investment in the Canadian economy. That growth will eliminate the Harper deficit and we will balance the
budget in 2019," This never happen under @JustinTrudeau
Yet Productivity has not improved - https://financialpost.com/opinion/opinion-bigger-post-covid-government-
may-mean-slower-productivity-growth-and-lower-incomes
Broken Promises - https://thetyee.ca/Opinion/2015/09/15/Liberals-Broken-Promises/
Records - https://www.progressive-economics.ca/2015/10/fiscal-and-economic-record-of-political-parties/
Here is my work on productivity - https://www.slideshare.net/paulyoungcga/how-to-improve-canada-global-
competitiveness-250054392

17. DID JUSTIN TRUDEAU HAVE THE
ANSWERS FOR GDP
• Justin Trudeau took an economy growing at 2.3% (Post-2009 recession to annual growth on average of 2.1%.
Trudeau seen GDP go from 3.0 in 2017 to 1.6 in 2019.
• Trudeau deficits did little to address systemic issues with the economy, i.e., productivity, building a resilient
supply chain, reducing gridlock, addressing issues with household debt.
• BOC buying government bonds - https://www.bnnbloomberg.ca/bank-of-canada-already-pushing-limits-of-
domestic-bond-market-1.1513097
• Canada economy - Blog – GDP – Canada by Industry – May 2021 -
https://www.slideshare.net/paulyoungcga/gdp-canada-naics-may-2021
• Canada economy – 2019 - https://www.slideshare.net/paulyoungcga/2019-election-world-economy-slow-
growth-canada-july-2019
• Trudeaunomics continues to be a failure - https://www.slideshare.net/paulyoungcga/has-trudeuaomics-been-
successful-for-canadians
• GDP – 2021 Despite all the deficits the economy continues to face major headways for the rest of 2021. It
goes to show Canadians that economies do not grow from the heart as @JustinTrudeau predicted a few
years ago! https://www.slideshare.net/paulyoungcga/gdp-canada-analysis-and-commentary-june-2021

18. TRUDEAU (TRADE AND EMPLOYMENT
VS. INFLATION AND BUDGET BALANCES
• The federal government ran a budget deficit
of $73.7 billion for the April to November
period of the current fiscal year.
• The Finance Department says the result
compared with a deficit of $232 billion in
the same period a year earlier.
• Government jobs continue to outpace the
private sector.
• Government continues to be slow with
adopting digital model.
Source -
https://www.advisor.ca/news/economic/eight-
month-deficit-feds-spent-73-7-billion-more-than-
they-took-in/ and
https://www.slideshare.net/paulyoungcga/fiscal-
update-for-canada-november-2021

19. GOVERNMENT AND MONETARY
POLICIES
• The government needs to grasp the BOC policies as part of any fiscal management cycle. Trudeau has since
day one increase the budget deficit without addressing key areas impacting supply chain and the
affordability of housing. Trudeau carbon tax had an impact on inflation.
https://www.investopedia.com/ask/answers/100314/whats-difference-between-monetary-policy-and-fiscal-
policy.asp
• Inflation is now at 3.7% which is a concern of the BOC - https://www.bankofcanada.ca/2016/10/renewal-of-
the-inflation-control-target-2016/

20. BOC – INFLATION AND HOUSING
BUBBLE
Tiff Macklem faced some tough questioning yesterday, as members of the
U.S. Council on Foreign Relations grilled the Bank of Canada governor on
whether their northern neighbour would have a trouble-free exit from the
downturn of the COVID-19 pandemic.
Led by financier and former Democratic politician Roger Altman, members of
the U.S. think-tank asked probing questions on whether Canada's housing
bubble would have any spillover effects on the global economy, as well as
on jobs, inflation, commodity pricing and the difficulty of moving from a low
interest rate regime to one without monetary stimulus.
To Canadians who have heard Macklem's views in the past, the answers
were in some ways less revealing than the questions. But among the new
things he did pass on were fears that inflation could well turn out to be more
long-lasting than expected and jobs recovery could be slower.
https://www.cbc.ca/news/business/boc-us-
concerns-column-don-pittis-
1.6203452?__vfz=medium%3Dsharebar
I am very concerned about these kinds of
messaging from BOC. There are structural issues
facing the economy like low productivity, high
taxes, excessive regulations, and
inefficient/ineffective government.
https://www.slideshare.net/paulyoungcga/what-is-
the-path-forward-for-canada-october-2021

21. FISCAL MANAGEMENT
Source - https://www.theglobeandmail.com/politics/article-
michael-sabia-was-greeted-as-a-game-changer-as-canadas-
deputy-
finance/?utm_medium=Referrer:+Social+Network+/+Media&ut
m_campaign=Shared+Web+Article+Links
• YTD Nov/15 there was 1B surplus (per the fiscal
monitor) that was turned into 987M deficit within a
few months of Justin Trudeau leadership
• Trudeau has spent well over $6B (3B in 2020) on
consultants -
https://nationalpost.com/news/politics/costs-for-
consultants-hired-by-government-rise-by-6-billion-
under-liberals
• Trudeau GDP growth went from 3% in to 2017 to
1.4% in 2019. The economy had been sluggish two
years prior to COVID19 -
https://www.slideshare.net/paulyoungcga/slow-
economic-growth-canada-march-2020
• Trudeau spending grew faster than revenues despite
strong revenues -
https://www.slideshare.net/paulyoungcga/fiscal-
management-public-sector-canada-250734309

22. FISCAL MANAGEMENT CYCLE
• Trudeau has spent billions on consultants
• Trudeau refuses to release his economic impact study on the carbon tax
• Australia has done a better job of getting goods out of the ground to
market
• Trudeau’s policies never addressed issues with productivity and
innovation.
• Trudeau increased taxes to the middle class
• Trudeau policies have done little to support FDI
• Pre-COVID19 Deficits were between 12B to $15B and yet growth was
less than the average post 2009 recession
• Trudeau continues to ignore AG, PBO, ethics, and other reports
• Trudeau took $1B surplus YTD Nov/15 to 987M deficit in four months.
Trudeau was never about value for money including improving
outcomes.
Source - https://www.slideshare.net/paulyoungcga/failure-of-
trudeaunomics-january-2022

23. SUMMARY
• I have always supported balance policies between protecting the environment while growing the economy in a sustainable way.
• I also support social welfare as long as those payments are targeted at those that need the support.
• Bank of Canada has renewed the 2% interest rate target. The problem is that there are structural issues with the economy that need
to be address if inflation can be brought down to the 2% range from 4.7% range.
• Housing needs concrete solutions including new urban planning strategy, adoption of 3D housing and other innovations as part
delivering affordable housing solutions.
• All levels of government need to work together to address issues with productivity, innovation, and skills gap
• All levels of government need to revisit their fiscal management cycle to ensure assets are safeguarding and program spending is
delivered with value for money,
• All levels of government need to undertake compensation and tax reforms as part of better managing both their costs and taxation
base.
Blog – Bank of Canada and Monetary Policies – March 2022
BNS_Monetary.pdf BMO_Monetary
Policies.pdf
Bank of Canada
Interest Rate 1935-2022 & 2022 Forecast WOWA.ca.pdf
Bank of Canada hikes
rates for first time since 2018 - BNN Bloomberg.pdf
Bank of Canada
raises key interest rate, but inflation could prove ‘difficult to tame’ - National Globalnews.ca.pdf
BoC will have to 'kill
the economy' to crush inflation Rosenberg - BNN Bloomberg.pdf
How to Pay for Basic
Income in Canada — Who Pays Probably not you..pdf
Green energy, low
supply to drive copper prices Advisor's Edge.pdf
Biden State of Union
Proposals Would Do Little to Curb Inflation - Bloomberg.pdf
Increase Domestic
Energy Production to Lower Costs at the Pump, Tester Urges Biden Administration Jon Tester U.S. Senator for Montana.pdf
Mayhem reigns in oil
markets as traders avoid Russian supply - JWN Energy.pdf
Threat to Europe Gas
Supply Bolsters Push on New U.S. LNG Plants - BNN Bloomberg.pdf
The War in Ukraine is
a Global Food Security Crisis Opinion.pdf
Canadian Housing
Affordability Hits The Worst Level Since The Last Bubble NBF - Better Dwelling.pdf
Commodities -
Bloomberg.pdf
Interest rate hike
won't cool housing, say experts CTV News.pdf
Summary:
High inflation is here to stay for awhile due to failed agendas of government.
Mitigating climate change is very important. The mitigation should be done through better policy
including how to best support cheap energy costs. The focus should also be on policies and programs
that support the green and circular economy.
Canada has lost it ways when it comes to encouraging innovation within the private and public sector.
Trudeau policies have been a failure!
Liberals around the world should revisiting their so-called carbon pricing schemes. There is a better
approach to protecting the environment while growing the economy in a sustainable way.
https://www.slideshare.net/paulyoungcga/how-the-public-and-private-sector-can-better-supoort-the-
circular-and-green-economies
Housing costs continue to rise! https://www.ctvnews.ca/business/interest-rate-hike-won-t-cool-
housing-say-experts-1.5802515
1. Interest rates - https://wowa.ca/bank-of-canada-interest-rate
2. First interest hike since 2018 - https://www.bnnbloomberg.ca/bank-of-canada-hikes-rates-for-
first-time-since-2018-1.1731177
3. Inflation - https://globalnews.ca/news/8654004/canada-interest-rate-hike-march-2022/
4. Inflation - https://www.bnnbloomberg.ca/boc-will-have-to-kill-the-economy-to-crush-inflation-
rosenberg-1.1731579
5. UBI - https://www.ubiworks.ca/howtopay
6. Green inflation - https://www.advisor.ca/investments/market-insights/green-energy-low-
supply-to-drive-copper-prices/
7. Inflation - https://www.bloomberg.com/opinion/articles/2022-03-02/biden-state-of-union-
proposals-would-do-little-to-curb-inflation
8. Energy - https://www.tester.senate.gov/?p=press_release&id=8934
9. Oil - https://www.jwnenergy.com/article/2022/3/2/mayhem-reigns-in-oil-markets-as-traders-
avoid-russ/