Stephen Poloz, governor of the Bank of Canada, came to the defence of standard economic theory in remarks on November 7, arguing the relationship between inflation and unemployment is still intact.
“The underlying trend in inflation is driven by the laws of supply and demand, which are as applicable today as they ever were,” the governor said.
Inflation targeting has come under heightened scrutiny lately, as inflation across many advanced economies has failed to rise in the face of aggressive
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