In Canada too, there were signs that domestic demand, which had held up through the first part of 2001, was softening and that the inventory adjustment, particularly in the electrical and electronic sectors, was less advanced than expected. Accordingly, we revised down our projections for the second half of 2001 and the first half of 2002.
One such oversimplification is to say that governments are for growth and central banks are for price stability. Another oversimplification is to assert that there is a tension between growth and inflation, and that one necessarily has to play the trade-off between growth and inflation in policy making. 15.