OPINION: Canada and the rest of the developed world have entered an era of low interest rates and sluggish growth. We should expect interest rates to remain low by historical standards when the next recession occurs. Since the Bank of Canada will be unable to cut rates much below zero, monetary policy alone won’t be able to effectively fight the next recession. The government will have to use fiscal policy – its spending and taxation powers. The challenge confronting us is to devise a framework for using fiscal policy in a timely, effective and responsible manner. A set of policies known as “unconventional fiscal policy” offers such a framework. Read More