White Lies

TORONTO, ON -- A little truth can go a long way. But a new study being conducted by the Bank of Canada--Canada's central bank and monetary policy regulator--suggests that a white lie can go a much longer way. It appears that Mark Carney, Governor of the Bank of Canada, was trying to stimulate positive thinking among investors, businesses, and consumers earlier this month when he announced that Canada's economy was recovering.

Analysts at the World Trade Foundation (WTF) discovered the white lie recently after comparing the Governor's statements with factual data. With significant negative growth in real GDP and an ever-rising unemployment rate, the economy looks far from ready to recover. The huge decline in commodity prices also does little to justify Mr. Carney's optimism.

Nonetheless, the Governor's efforts are not in vain. His calming words are being reflected in investor and consumer optimism, in turn reflected in better performance among the banks, now better adjusted to the recessionary economy.

The WTF congratulates Mr. Carney on his excellent implementation of monetary policy and supports his vision of a better world--powered by a few white lies.

Related reading: http://www.cbc.ca/money/story/2009/07/24/f-second-quarter-earnings-picture.html