My work discusses many areas of policy that drives inflation including the cost of living

1. WHAT IS MONETARY
POLICY AND WHY IS
IT IMPORTANT TO
GOVERNMENT
Paul Young CPA CGA
December 20, 2021

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. CANADA AND INFLATION
Inflation has gone up nearly 4x since Trudeau was elected. Trudeau’s policies did little to address issues with housing costs,
building a resilient supply chain, getting goods to market, and other areas of policies.
The next government needs to put more focus on addressing the systemic issues that are driving inflation like carbon pricing or
excessive regulations or tax reforms or food security.
https://www.slideshare.net/paulyoungcga/cost-of-living-canada-august-2021

7. CANADA PRODUCE PRICE INDEX

8. HOUSING AND CANADA
Blog – Real Estate and Housing – Canada – August 2021
I have been calling out on real estate and housing issues for many years. All I ever see from the different levels of government
are stop-gap solutions that are neither viable nor will address issues with supply and costs. The critical path for any housing
strategy is to re-think the model including:
1. how best to utilized land
2. Pricing model of housing
3. Reducing the cost of construction through innovative ways like 3D housing or modular assembling
4. adopting better policies that relate to rural and urban planning
5. adopting policies that mitigate the impacts of climate change
My work:
https://www.slideshare.net/paulyoungcga/housing-affordability-canada-and-the-world

9. COST OF LIVING

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

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

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

13. INNOVATION
https://www.theglobeandmail.com/business/article-conservatives-aim-to-wrest-innovation-leadership-from-
liberals-but/?cmpid=rss&utm_source=dlvr.it&utm_medium=twitter
There is a big difference, right? @JustinTrudeau push failed superclusters, right? I do not see @erinotoole
pushing the superclusters, right? @CPC also were never for the failed infrastructure bank! @CPC would not
introduce excessive taxation and regs.
https://www.slideshare.net/paulyoungcga/how-canada-can-put-more-focus-on-innovation

14. 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

15. 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
• 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

16. 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/

17. 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

18. 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

19. FISCAL MANAGEMENT CYCLE
Taxes are up in Canada and spending is down based on the latest Fiscal Monitor
https://www.slideshare.net/paulyoungcga/fiscal-management-public-sector-canada Nowhere are any of the parties
discussing the need to get better value for tax dollars, why?
@theJagmeetSingh now thinks it is time to shut down tax havens. You would think that from Oct/19 until the election
call that he would have push bills to shut the havens down, right?
2018 https://www.slideshare.net/paulyoungcga/offshore-tax-havens-march-2018
2020 https://www.slideshare.net/paulyoungcga/closing-down-of-tax-havens
2021 - https://www.slideshare.net/paulyoungcga/2021-election-tax-policies-tax-havens-and-other-tax-policies

20. 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 – Monetary Policies – Canada
National Banque -
Canada - 202112.pdf
Report says
Canadians must give more personal info to StatsCan - The Western Standard.pdf
The BoC Is Waiting
For Full Employment To Raise Rates. Banks Say Canada Is Past That - Better Dwelling.pdf
Inflation Up 4.7
Percent, According To Statistics Canada - Huddle.Today.pdf
Billions in 'unknown'
funds flowing into Canada's housing market Transparency International - Video - BNN.pdf
Productivity and
CAnada.pdf
Innovation and
Canada.pdf
Democrats outraged
after Manchin opposes Biden spending bill TheHill.pdf
2022 predictions
recycling of battery metals set to boom.pdf
Natural Resources
and Critical metals.pdf
Summary:
There have been structural issues with the Canadian economy for decades. The problem has been that
Trudeau policies have little focus on tax and regulatory reforms, lack of focus on innovation outside of
incubation centers, lack of focus on getting goods to market, lack of focus on building a resilient supply
chain, lack of affordable housing options, etc.
Not once has Trudeau said pausing of his tax and spend and policies to focus on more targeted policies
that address innovation, skills gap, productivity, and deliver program spending with value for money!
1. BOC and inflation target - https://www.bnnbloomberg.ca/bank-of-canada-renews-2-inflation-
target-adds-jobs-to-mandate-1.1694989 (2% target)
2. Interest rates and defaults – https://www.theglobeandmail.com/business/article-bank-of-
canada-calls-out-investors-for-boosting-home-prices-warns-of/
3. Inflation held steady at 4.7% for November 2021 - https://huddle.today/2021/12/15/inflation-
up-4-7-percent-according-to-statistics-canada/
4. Foreign investments / housing - https://www.bnnbloomberg.ca/real-estate/video/billions-in-
unknown-funds-flowing-into-canada-s-housing-market-transparency-international~1644554
5. Productivity - https://thehub.ca/2021-12-16/canada-already-has-big-companiesit-needs-young-
dynamic-ones-too/
6. Innovation - https://policyoptions.irpp.org/magazines/december-2021/how-innovation-can-
build-the-canadian-economy/
7. Biden’s bills that are about protectionism policies -
https://thehill.com/homenews/senate/586464-manchin-opposition-to-build-back-better-sends-
shock-waves-through-political
8. Climate - https://www.mining-technology.com/features/recyling-of-battery-metals-predictions-
2022/
9. Carbon tax and farmers - https://www.producer.com/opinion/government-programs-can-ease-
farms-carbon-tax-burden/
10. Full employment and interest rates - https://betterdwelling.com/the-boc-is-waiting-for-full-
employment-to-raise-rates-banks-say-canada-is-past-that/