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Carney takes a swipe at companies sitting on ‘dead money’

Bank of Canada governor wants corporations to invest productively during economic downturn


 

Bank of Canada Governor Mark Carney has accused Canadian corporations of companies of sitting on “dead money” in the economic downturn, money that he says should either be invested productively or returned.

Mr. Carney acknowledged that companies are wary of investing as debt problems plague Europe and the United States, but said their caution was “excessive”.

It’s unusual for a central banker to criticize the country’s corporations, and some executives have responded by saying that being cautious is both prudent and necessary in this economic climate.

Mr. Carney, however, says Canadian corporations are not doing enough to become a competitive force in the global economy.


 
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