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Bank of Canada sees unorthodox-policy benefits outweighing risks

Blog by Brad Herman | May 17th, 2013

The risks of unconventional policies pursued by major central banks since the financial crisis appear to be minor compared with the benefits, Bank of Canada researchers said on Thursday.

As policymakers at the U.S. Federal Reserve ponder how to withdraw some of the extraordinary stimulus they've been pumping into the economy, there are worries that moving too quickly could undermine economic recovery but moving too slowly could fuel inflationary pressures or create new asset price bubbles.