Many observers emphasize the need to keep inflation from rising above 2 percent. But in my view, inflation below 2 percent is just as much of a problem as inflation above 2 percent. The central bank of Canada also has a 2 percent inflation target.
Notwithstanding the better recent data, the job market remains far from normal: The unemployment rate remains elevated, long-term unemployment is still near record levels, and the number of persons working part time for economic reasons is very high.