Question
How to respond to the paragraph? This article show us how economy is worrying and over heated after the pandemic. Our main concern in about
How to respond to the paragraph?
This article show us how economy is worrying and over heated after the pandemic. Our main concern in about inflation and increasing demand but raising unemployment can tighten our supplies and enter canadian economy in to a recession. I work at the grocery store and their main issue is not having enough supply for demand increases. Increasing interest rate can be one of the ways that can reduce people saving and decreasing demand so that causes decreasing demand, but that can also be a big issue for government cause raising interest rate can cause public debt cause government spending exceed taxes. In this video Governor also mentioned if people believe that this inflation is not temperatuary and continue spend their saving that can be a bigger problem. we also have timing problem with monetary problem after recognition lag we should pass administration lag and alsooperational lag and that takes too much time to enter this polict to our banks and employment and businesses. This situation is not normal and this policy can have unpredictable(rachet) affect in our economy. That can raise unemployment cause higher interest means businesses can not pay their debts from the loans and forced to cut their employees and that can cause a bigger problem.
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