This in turn could worsen fiscal conditions and substantially constrain the effects of monetary easing. As specified in the joint statement by the government and the Bank released in January 2013, the implementation of fiscal consolidation measures is an important prerequisite for the success of QQE and is essential for Japan’s economy in overcoming deflation and achieving sustainable growth.
We live in an era of rapid change, and we operate in a global environment that is constantly shifting. Uncertainty, risks, and shocks are a constant feature of the economic landscape. For Canada, this is particularly relevant given how open our economy is to international trade and capital flows.