Starting in 2010, however, with the worst effects of the crisis behind us, Canada’s fiscal policy gradually moved back into consolidation mode. Even so, the legacy effects of the financial crisis have lingered in many countries, and Canada’s export recovery has been halting at best. Accordingly, monetary policy has remained very easy in order to keep inflation near its target.
Thus, in broad strokes, over 30 years, Canada’s policy mix moved from tight monetary/easy fiscal to neutral/neutral and then to easy monetary/tight fiscal, until the fiscal adjustments made in 2016, just at the time of writing.