Bank of Canada’s Governor Mark Carney blamed the Obama administration for the slow economic recovery. By taking insufficient measures to stabilize financial institutions in the United States, the government allowed the financial crisis to deepen. “Progress on these measure has been slower than expected in the United States and other major financial centres,” the governor said.
On monetary policy, he told reporters that enacting quantitative easing remains a “big if” and that a big “shock” would need to hit the system before such a measure would be considered.
This lack of initiative comes as the Bank of Canada forecasts that the economy may have shrunk by a record 7.3% in the 12 months through the end of the first quarter.
