Does unemployment need to go up for inflation to come down?
BNN Bloomberg
Resiliency in Canada’s jobs market – even as inflation has begun to drop – has prompted a key question: does unemployment really need to go up for inflation to go down?
The Bank of Canada has put unemployment in its sights as it aims to bring inflation down to a target of two per cent, but resiliency in Canada’s jobs market – even as inflation has begun to drop – has prompted a key question: does unemployment really need to go up for inflation to go down?
Economists who spoke with BNNBloomberg.ca pointed out that inflation has already come down without major job losses – but the question remains over what will happen next.
“It's almost the macroeconomic question of 2023,” said Brendon Bernard, senior economist at Indeed.
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