Putting Money to Work: Monetary Policy in a Low Interest Rate Environment

Expanding the money supply is the best option for the Bank of Canada in a low interest rate environment, states a new report from the C.D. Howe Institute. In “Putting Money to Work: Monetary Policy in a Low Interest Rate Environment,” author Steve Ambler suggests that it should use quantitative easing (QE) to increase the broad money supply, on a longer term rather than a temporary basis, to encourage spending on goods and services by individuals and firms.