Economic Stimulus Should Have Stopped Earlier to Tame Inflation, Bank of Canada Says

Economic Stimulus Should Have Stopped Earlier to Tame Inflation, Bank of Canada Says
The Bank of Canada building in Ottawa in a file photo. Reuters/Chris Wattie
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Bank of Canada deputy governor Paul Beaudry said in hindsight, governments and central banks should have withdrawn stimulus measures earlier as economies recovered from the COVID-19 pandemic, which likely would have kept a lid on inflation.

In a speech at the University of Waterloo on Sept. 20, Beaudry said a faster global withdrawal of fiscal and monetary stimulus during the recovery from the pandemic would have likely resulted in lower inflation.