As T S Eliot observed, albeit in a different context, “the danger of freedom is deliquescence; the danger of strict order is petrification”. So, the question is: how to achieve the right balance? 15. Let us take the area of inbound foreign investment for example. The two ways of investment in an enterprise are either through direct investment or through portfolio investment.
This is because central bank balance sheets can be adjusted in ways that can lead to policy interest rates being maintained at appropriate levels and that do not lead to other sources of inflationary pressure. In my remarks today, I will review how the Bank of Canada’s liquidity measures, 1 including new measures introduced during the crisis, were guided by principles.