The 2021 agreement introduced a new goal—that monetary policy should also support maximum “sustainable” employment.
Government tax revenues can increase even though the inflation-adjusted incomes of most Canadians do not.
Ramping up interest rates at this juncture places more of the burden of fighting inflation on consumers.
The move by governments worldwide to substantially reduce the use of carbon fuels will likely produce even slower productivity growth.
If the inflation rate remains relatively stable over time, suppliers should know when higher prices signal increased scarcity.
The price of meat has increased by 9 per cent in Canada.
The price of gas has increased by 41.7 per cent over the last 12 months.
At 3.8 per cent, Canada’s inflation rate for 2021 is expected to rank 6th highest among 35 IMF advanced economies.