Clearly, this topic has never been more relevant than today. In my remarks today, I will focus on the experience in the euro area and consider the following three questions: First, what has characterised the pricing of sovereign credit risk over the last two decades? Second, what is the relevance of the sovereign debt market tensions for monetary policy?
Indeed, with households wanting to enjoy many of the close-contact services they missed, businesses have had a hard time hiring enough workers to produce all the goods and services Canadians want to buy. Job vacancies are elevated, and firms report widespread labour shortages. This is symptomatic of an economy that is overheated. Businesses can't keep up with demand, and this is driving prices higher.