Economics
New Bank of Canada Governor Faces Stagflation, Rosenberg Says
- Prices will rise even as economy struggles, economist says
- Tiff Macklem becomes new central bank head on June 3
David Rosenberg.
Photographer: Misha Friedman/BloombergThis article is for subscribers only.
Incoming Bank of Canada Governor Tiff Macklem will face a combination of rising prices and stagnant growth as the economy struggles to recover from the coronavirus pandemic.
That’s the forecast from Canadian economist David Rosenberg, who sees prices increasing as consumers feel comfortable shopping again and production costs rising even as the economy underperforms -- an unusual combination known as stagflation.