Scotiabank economists say hawks fear an asset bubble, but monetary authorities should resist

(Source: Globe and Mail)

Whenever there is a presumed “asset bubble,” speculation about interest rate hikes starts up, economists Derek Holt and Karen Cordes of Scotia Capital Inc. said in a research note Tuesday.

“That’s the message the hawks are delivering: Asset bubbles, some perhaps clearer than others, should be pricked by fairly aggressive rate hikes,” the Scotia Capital team wrote.

Read the full opinion “Why central banks should not raise interest rates” in the Globe and Mail (October 27, 2009).

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