Thank you, Mr. Chair.
Mr. Macklem, on February 7, 2022, American economist Joseph Stiglitz wrote an article entitled “A Balanced Response to Inflation.” I'll read two excerpts and then ask for your opinion on what he wrote.
At the start of the article, he wrote the following about inflation:
Nonetheless, my biggest concern is that central banks will overreact, raising interest rates excessively and hampering the nascent recovery. As always, those at the bottom of the income scale would suffer the most in this scenario.
The other excerpt comes from the end of the article:
This much we do know: A large across‑the‑board increase in interest rates is a cure worse than the disease. We should not attack a supply‑side problem by lowering demand and increasing unemployment. That might dampen inflation if it is taken far enough, but it will also ruin people's lives.
I want to hear your thoughts on this matter.