Loading ...Inflation Mostly a Made-in-Canada Problem, Finance Committee Hears
The high inflation bout affecting Canadians is not transitory nor mostly tied to a global phenomena, two economics experts told the House finance committee on March 21, but it is instead the product of domestic monetary and fiscal policies.
“So just in layman’s terms, central banks made credit available almost for free and flooded the financial system with cash.”
This has led to a bloating of the financial sectors with “huge asset price inflation bordering on bubble territory,” said Dehejia, who linked this asset price increase to the housing affordability crisis.
Robson estimates the Bank of Canada’s overnight rate should be 3 or 4 percent to rein in inflation. “That’s not as high as it got during the last disinflationary episode, but it’s quite a bit higher than what people are ready for. And it’s certainly higher than what the government is expecting, and its fiscal plans, and the cost of servicing its own debt,” he said.”
Question to Canadians, did your govt.(either federal and or provincial) provide any direct stimulus checks and or programs like in the US? If not, where did all the extra money creation actually go to?