Question
Can you provide a rebuttal to this article? Inflation isn't always a bad thing. It can help a country's economy to recover or stabilize if
Can you provide a rebuttal to this article?
Inflation isn't always a bad thing. It can help a country's economy to recover or stabilize if controlled at a certain rate. As Canada starts to reopen again, employment will increase as businesses start to operate normally which will help the economy to recover and grow. I agree with the Bank of Canada that letting inflation stay at 3.6% is risky because it is by far the highest inflation rate of Canada since 2011, but, putting your people - employment first is worth risk-taking. In addition, if a recession happens, to stabilize the economy and eliminate the recessionary gap, the government will need to decrease its tax or increase its spending which is not good for the economic recovery. It was also mentioned that the country's inflation rate is still in the safe zone which I also believe is true because compared to other countries where inflation is much higher, Canada is still in a better position. And as long as it is true that there are taking a calculated risk and believe that if everything does not go well according to plan, they have other solutions prepared so it will not deter the economy and its people. However, if Canada will decide to adjust the inflation to a lower rate, this will affect people, businesses, and investors as it will implement policies to increase interest rates and taxes. Also, we should not only focus on employment as there are other factors affecting inflation such as lack of supply in which once sustained or demands are being met, but it will also relatively decrease inflation.
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