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Rein in Inflation or Risk a '70s Rerun, Warns David Dodge

June 19, 2023

It's not the kind of rerun of a '70s show that Canadians will want to watch.

David Dodge tells the Financial Post why the Bank of Canada has a year to 18 months to get inflation under control or risk a return to the "pretty awful era" between the mid-1970s and '80s characterized by a lack of pricing predictability and social upheaval. 

He says the Bank of Canada has taken the right steps for the short term, but he believes global economies are in the midst of a great upheaval, with fractured trade that will make it difficult to keep costs down, and an increasingly digital world that will result in clear winners and losers. 

"(We're) going into this very, very difficult period of having to make changes to adapt to climate change and the difficult period where we're going to have technology changes which will change some relative wages."

 

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