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We’re going to be living in a deflationary world — podcast

Just a few months ago, Canadians were part of a mad scramble to obtain masks, gloves and other personal protective equipment.

The shortage was so acute that policymakers started a concerted effort to build a supply chain in Canada, a process known as reshoring.

On this week’s Down to Business, Irene Lauro, a senior economist at Schroders, explains the ripple consequences of reshoring and offered a high-level analysis of the state of the economic recovery as part of an ongoing series on the challenges and opportunities of Reopening Canada.

Lauro said reshoring may be accelerating an existing trend towards a gradual reversal of globalization, and that there may be unintended consequences, including that companies look to offset the higher cost of labor, in jurisdictions such as Canada, by relying more on automation.

Deflation, the term for when prices start falling, is a top concern for economists as the recovery moves forward, because this could change people’s spending habits and stall progress.

You can listen below — or on Apple PodcastsSpotifyStitcher and Google Play, where you can also subscribe to get new episodes every Wednesday morning.

If you have any questions about the show, or if there are topics you want us to tackle, email us: [email protected].

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