Nobody wants to return to lockdown, but a second wave could test our resolve to practise physical distancing and keep the pandemic from spreading uncontrollably again. In Canada, governments have focused fiscal efforts on emergency relief, wage support and subsidy programs to protect Canadians and keep workers connected to employers. Federal agencies have also helped companies with a variety of credit support programs.
The extensions of the wage subsidy and credit programs are now supporting recovery. The Bank of Canada has contributed to the recovery effort by keeping credit flowing and by providing considerable monetary stimulus. With core funding markets seizing up in March and April, the Bank launched a series of asset purchase programs to restore market functioning. These programs worked.