Tuesday, May 21, 2024

According to the Bank of Canada | Economic stimulus should have stopped sooner

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Alan Binder
Alan Binder
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(Ottawa) Rétrospectivement, les gouvernements et les banques centrales auraient dû retirer les mesures de relance plus tôt lorsque les économies se remettaient de la pandémie de COVID-19, ce qui aurait probablement limité l’misigeant de la ban a que ad form Canada.

Posted at 5:06 p.m

In a speech at the University of Waterloo, Deputy Governor Paul Bodry said the rapid global decline in fiscal and monetary stimulus during the post-pandemic recovery is likely to translate into lower inflation.

In the text prepared for his speech, Bewdry says that countries around the world have not given enough thought about the difference between the pandemic and previous economic crises.

The deputy governor explained that the simultaneous stimulus provided by countries through government support programs and low interest rates had cascading effects globally and contributed to supply chain bottlenecks.

However, the stimulus measures contributed to a faster-than-expected economic recovery, as labor markets recovered six months before the global financial crisis, Beaudry added.

Going forward, the Bank of Canada will focus on clear communications with the public about its policy decisions, Beaudry said, to ensure Canadians do not expect high inflation to continue for a long time.

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