Roubini Advocates More Aggressive Policy to Weaken Loonie

Nouriel Roubini, the New York University economist who accurately predicted the U.S. housing slump would trigger a recession, said the Bank of Canada should take a stronger line on monetary policy to weaken the currency and spur the economy.

“I would use more aggressive monetary policy to weaken the currency,” Roubini said at a lunchtime event at the Toronto Hilton, referring to the Canadian dollar. “That’s what I would do. More than fiscal stimulus I would say a commitment to keep rates low for longer, or having an easing bias, something along those lines.”