The Globe and Mail reports in its Wednesday, Sept. 22, edition that getting the COVID-19 pandemic in the rearview mirror remains the government's top economic priority.
The Globe's David Parkinson writes that the Liberals have to come to grips with the obvious unease with elevated inflation, an issue that hit home with many voters. They must ask hard questions about the degree to which their policies and fiscal management are contributing to the problem.
While the deep distortions of the pandemic may be the root cause of these unusual inflationary pressures, there is a legitimate concern that over-stimulative government spending and rising federal debt could turn a temporary spike into a lasting and pervasive problem. Voters did not easily shrug this worry off, nor should this government, says The Globe.
The government needs to get more serious about spelling out specific, transparent anchors for removing fiscal stimulus as the recovery advances. It also has an immediate opportunity, in this fall's five-year renewal of the Bank of Canada's agreement with the federal government on its monetary policy mandate, to reinforce the bank's core objective of maintaining low, stable and predictable inflation.
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