Growth is slowing and headline inflation falling rapidly, but, as in other countries, core inflation has been stickier and short-term expectations elevated in the context of still-tight labor markets. The financial system appears broadly resilient despite global banking stresses and ongoing mortgage resets at higher interest rates. With the world moving from one crisis to the next, risks to a highly open economy like Canada are substantial and compound domestic vulnerabilities related to inflation expectations, the housing market, and household leverage. The outlook thus remains uncertain, and shocks could push the economy into a mild recession.

The Canadian economy appears to have achieved a soft landing: inflation has come down almost to target, while a recession has been avoided, with GDP growth cushioned by surging immigration even as per capita income has shrunk. Housing unaffordability has risen to levels not seen in a generation, with demand boosted by immigration and supply facing continued challenges to expansion.

Global price pressures beset Canada’s economy just as unemployment was nearing record lows amid a strong recovery from the pandemic. Policymakers face the challenge of reining in inflation without causing a recession.

In the last two years, Canadian society has been marked by political and ideological turmoil. How does an increasingly divided country engage a world that is itself divided and tumultuous? Political instability has been reinforced by international uncertainty: the COVID-19 pandemic, populism, Black Lives Matter, and the chaotic final year of the Trump presidency that increased tensions between the West, China and Russia. Even with a Biden presidency, these issues will continue to influence Canada’s domestic situation and its ability to engage as an effective global actor. Contributors explore issues that cause or reflect these tensions, such as Canada’s willingness to address pressing crises through multilateralism, including the COVID-19 pandemic. Can Canada forge its own path in a turbulent world?

Marking the Sesquicentennial of Confederation in Canada, this book examines the growing global influence of Canada's Constitution and Supreme Court on courts confronting issues involving human rights.