Yahoo Finance This economist thinks interest rate hikes are doing more harm than good
Lately, news about inflation has been positive in a good way. Compared to a year ago, when inflation was 8 per cent, the consumer price index is now 4.4 per cent.
That’s moving closer to the coveted two per cent target and it follows one of the fastest interest rate hiking cycles in modern history.
This week Down To Business talks to Louis-Philippe Rochon, a professor of Economics at Laurentian University in Sudbury, who takes a contrarian view of the situation. He believes that higher interest rates have not ameliorated the inflationary environment.
Throughout the past year, Rochon has been inviting economists from around the world to contribute to his Monetqary Policy Institute Blog where they probe the numerous impacts of central bank policies.
He offers a pointed critique of central bank policies and posits that interest rates may have done more damage than good. As always the interview is edited for clarity and brevity.
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If you have any questions about the show, or if there are topics you want us to tackle, email us: downtobusiness@postmedia.com.
• Email: gfriedman@postmedia.com | Twitter: GabeFriedz
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