Quote:
Originally Posted by blankall
A major issue was the even before covid hit, the central bank had ultra low interest rates. They were using these rates to disguise deficiencies in the economy. Consumer debt was already at a very dangerous level. Instead of biting the bullet, successive governments kicked the can down the road.
When covid hit, the government had little choice then to spend, but things should have been in a much better place prior to covid. A lot of the issues, imo, had to do with lack of proper regulation in the housing market. They kept interest rates low, to let "average Canadians" get into the market and avoid a crash following the initial investor driven inflation of the housing market.
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I don't believe this was the goal - pre-Covid, they were keeping interest rates low to fight deflationary risks.