The onset of the pandemic saw a high degree of coordination between our monetary and fiscal authorities. The Bank of Canada lowered its overnight rate to its effective lower bound and engaged in quantitative easing, governments pumped in stimulus and support programs, and the Office of the...

When monetary and fiscal policy are in conflict in periods of high inflation, with the Bank raising interest rates while the government increases new spending, the risk of an ever-growing debt burden and even higher inflation increases. However, our research shows that because people are mostly...