Following discussion with other Policy Board members and taking into account the staff view regarding practicalities, we came to a conclusion. The name of the quantitative and qualitative monetary easing that we introduced this time speaks for itself. This is indeed a new phase of monetary easing both in terms of quantity and quality.
The first was during the 1970s, when we were hit by a rapid slowdown in productivity growth and by the effects of the oil crisis. Policy-makers in Canada used macroeconomic and microeconomic policies to try to cushion the economy from the impact of those events. As a result, our adjustment was slower and more painful than it needed to be.