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Tag: stagflation

Weekly Update for the week ending March 20, 2026

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Stagflation: What It Is and Why Markets Are Paying Attention Right Now

The last few weeks, I’ve been seeing the term “stagflation” pop up more and more to describe the situation Canada – and to a lesser extent the US – may find themselves in over the coming months. At a basic level, inflation is when the overall cost of living rises over time, meaning your money doesn’t go as far as it used to. Most central banks, including the Bank of Canada (BoC) and the Federal Reserve (Fed), aim for around 2% inflation per year, which is considered healthy for a growing economy. A recession, on the other hand, is when economic activity slows down – businesses earn less, hiring weakens, and unemployment begins to rise. But what exactly is stagflation? This week, I thought I’d take a closer look.

Weekly Update for the week ending March 28, 2025

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Economists and analysts have been bringing up the word ‘stagflation’ lately – and that’s not a good thing. It’s an economic scenario no one wants, where growth stalls while prices keep rising. The term might sound complicated but understanding it now can help you avoid surprises later. So this week, I thought I’d go over what stagflation is and explain it in a way that’s easy to understand.

What is Stagflation?

Imagine you’re driving in bumper-to-bumper traffic – moving painfully slow – but at the same time, your car’s engine is overheating. That’s basically stagflation in economic terms: the economy isn’t growing much (or at all), but prices keep rising. Normally, inflation happens when the economy is booming, and a slowdown helps cool things down. But stagflation flips the script, combining slow growth with rising costs – something that can leave consumers squeezed and businesses struggling.

Weekly Update for the week ending March 21, 2025

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How Tariff Wars Are Impacting the Canadian Dollar—And What It Means for Us

With all the talk about tariffs and their effect on the Canadian and US economies, I started wondering – what do these trade battles mean for the already weak Canadian dollar? My first thought? It can’t be good. But that made me realize I wasn’t entirely sure how tariffs influence our currency or what that means for us as consumers, businesses, and investors. As Daenerys Targaryen would say, “Let’s begin!”