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Macklem On Differences Between US and Canadian Growth

CANADA
  • Monetary policy has more traction in Canada from mortgage market structure.
  • Consumption has been stronger in US than Canada because excess savings have mostly been spent in the US whereas Canadian excess savings have largely been saved.
  • Productivity: Canada has been very good at growing its population by immigration, US growth has been more from productivity. Productivity growth has been pretty flat in Canada. Productivity growth makes everything easier, supporting non-inflationary growth.

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