There’s one thing Carney-the-politician keeps getting wrong. He should take advice from Carney-the-economist
There's a growing gap between Prime Minister Mark Carney’s economic theory and his political actions, writes Justin Ling. He argues Carney’s support for housing subsidies and mortgage incentives contradicts the macroprudential principles he once championed as a central banker. Federal and provincial policies, including tax breaks, expanded mortgage insurance and homebuyer incentives, have increased demand and household debt, driving up housing prices while supply remains constrained by zoning, labour shortages and other bottlenecks. “As Carney explained in his book Value(s), ‘the cost of macroprudential interventions can be felt today but their benefits are often realized far into the future,’” Ling quotes. “Now in office, Carney is ‘laser-focused on lowering costs for Canadians and making home ownership a reality.’ But he continues doing the very things that are raising costs and making home ownership but a dream. We could use more of Carney the economist to save us from the madness of Carney the politician.”
