If a recession hits, we’ll need a new ‘Plan B’

It will be different this time, and the usual tools won’t work as well

Yan Barcelo 1 October, 2019 | 2:02AM

Traffic sign in water

For many, a new recession looms, but its cause will be different this time, and the old financial remedies won’t do much difference.

In 2008, the crisis was financial, the response also financial. Central banks injected massive amounts of money in the system and lowered rates to historical lows for a historically long period; at the same time, governments increased debt dramatically to stimulate depressed economies. But these tools might not be able to tackle the type of trouble we’re starting to see.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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