[On September 22nd I had the honour of giving the 2014 Mabel Timlin Lecture—“Inequality and its Discontents”—at the University of Saskatchewan. This post is the introduction, and the full lecture will be published in the near future.]
Mr. Carney can’t push on a string. And he knows it.
His now famous comment labelling the stockpiles of retained earnings held by Canadian firms as “dead money”, while perhaps being the most memorable quote of 2012, must also have been made out of a certain frustration that even this superstar central banker faces limits in his powers to push, encourage, and otherwise jumpstart business investment.
The Governor of the Bank of Canada knows that the flip side of dead money is insecurity in the jobs market.