David, you got to the heart of the matter when you said recently: [Central banks] “must not lose the ability to do the opposite when necessary, for example when inﬂation rises.” [14] And you hinted that after the crisis, inﬂation would probably return. [15] Elga Bartsch mentions several reasons why https://www.bundesbank.de/en/press/speeches/too-close-for-comfort-the-relationship-between-monetary-and-fiscal-policy-850120  5/11  11/5/2020  Too close for comfort?
The appropriate goals and focus for monetary and fiscal policies I will start with the topic of the appropriate goals for monetary and fiscal policies. In the 1970s, it was not only Canada, but most industrialized countries, that went off track in terms of their economic performance and budgetary outcomes.