Former Governor of the Bank of Canada David Dodge strongly disputes the statement of the Conservative MP and candidate for leadership Pierre Poliver that the central bank is “financially illiterate.”
In an interview with CTV in question on Sunday, Dodge, who was governor from 2001 to 2008, called the statement “bull ****”.
“I am very offended by this… They understand what is happening,” he said, adding that the Bank of Canada’s navigation over the past two years has effectively saved Canada from a “real depression” that will emerge from the pandemic.
Poilievre’s criticism of the Central Bank of Canada is a key pillar of his leadership campaign. He questioned her independence, promised to audit her and would ban her from using her own digital currency.
On April 22, he tweeted that the Bank of Canada says #Bitcoin-ers have no financial literacy. This is from the same people who promised that we would have “deflation” just before inflation reached a 30-year high. Our central bank is financially illiterate. Restore healthy money. “
This comment came after the publication of a report by the Bank of Canada, which noted that there is a slight demographic change in bitcoin owners in terms of gender, age and income level from 2018 to 2020 compared to 2017.
“However, bitcoin ownership remains concentrated among young, educated men with high household incomes and low financial literacy,” the report said.
It goes on to say that at the same time, “Canadians who are financially literate are more likely to be aware of bitcoin [than the average Canadian] but you’re less likely to own it. “
From Poilievre’s other position – that cryptocurrency allows people to “give up” inflation – Dodge said he “has no idea what he’s talking about.”
“He’s just wrong, because the issue of rising prices … that you have to deal with on your income is currently basically structural,” he said. “We have supply constraints, partly because of the war, partly because of COVID, partly because of the continuing characteristics of the economy – we are all getting older – the workforce is not growing so fast.
But Poilievre said he was not trying to win the opinion of past or present central bankers in his promise to help Canadians suffering from high living costs every day.
“If you think I’m going to keep quiet about protecting the egos of bankers and politicians, then you’re in for a surprise,” Poalivr told reporters during a pre-election rally in Ottawa on April 28th.
The Bank of Canada has come under fire as inflation continues to reach new heights. It is currently 6.7 percent, well above the central bank’s two percent target.
In a speech to Women in the Capital Markets this week, Senior Deputy Governor Carolyn Rodgers acknowledged Canadians’ insecurity with the current economic climate.
“We are fully aware that with some of the extraordinary actions we have taken during the pandemic, and with inflation well above our target, some people are questioning this confidence,” she said.
“Difficult issues, additional control and informed debate are perfectly appropriate in the current environment. We welcome them as an opportunity to communicate with Canadians about what we do, how we do it, and how we can improve. ”
Dodge said the danger of losing public trust was “always there” and as such, top-down communication was “very, very important in that regard.”
“But they must be nervous. As the average citizen does, he must be nervous about a future we do not know. We do not know how the geopolitical situation in the world will develop. We do not know how the pandemic situation will develop, “he said.
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