ZCAN - Rising Interest Rates Is A Good Thing For Governments

• Central bank mandates are to target inflation, not to bankrupt central governments because they do not approve of fiscal policies.
• Central banks always have had to maintain their balance sheet sizes, and there were a number of test cases of quantitative easing over the past decades.
• A weaker Canadian dollar boosts exporters, creating the theoretical possibility of rebalancing the private sector away from housing.
• The Bank of Canada is boxed in because of debt, but Federal Government debt is not the source of concern.

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