Our thinking was that it was better to do too much up front to strongly support the recovery than to play catch-up later. When the pandemic first hit, the top priority was to support Canadian households and businesses.
But we have to start from where we are, and the obstacles on the way must be analyzed and overcome. I will argue that the present mood in the markets is partly an overreaction, a sort of mirror image of the irrational exuberance of the first years of the 21st century. The tasks of financial consolidation and reregulation are real and unavoidable.