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Canada, along with the rest of the world, has been battling high inflation over the past few years. But while this episode of inflation has created challenges for many, it’s important to recognize that Canada has faced similar situations in the past.
Today in The Conversation Canada, Walid Hejazi and Laurence Booth from the University of Toronto shed light on Canada’s historical experiences with inflation, particularly during the 1980s and 1990s.
Hejazi and Booth emphasize the importance of central banks taking swift action to prevent inflationary expectations from becoming too deeply rooted in the economy. They write: “Once entrenched, the economy ends up bearing significant pain to reverse it — pain that is not spread evenly across the population.”
By learning from the past, we can prepare for the challenges ahead and work towards a more resilient future.
Also today:
All the best.
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Eleni Vlahiotis
Assistant Editor, Business + Economy
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While the current episode of inflation has created challenges for many, this is not the first time Canada has gone through such an experience.
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