Ed joined BNN for an interview, where he elaborated on the article he wrote for the C.D. Howe Institute on the effects of the Bank of Canada’s quantitative tightening. That article emphasized that the policy is new territory for the Bank, and there is a lot of uncertainty regarding its effects. Translating forecasts for similar policies in the US, he calculated the effects as potentially quite contractionary due to the amount of debt the Bank would be pushing into the smaller Canadian bond market. Consequently, he argues that the Bank needs to monitor the effects of quantitative tightening carefully and emphasize policy flexibility rather than predictability.