Because you know it’s going to come up yet again during Question Period today and through the rest of the week, here are a couple of reality checks around inflation, first from former Bank of Canada governor Stephen Poloz, who will give you all of the reasons why the pandemic spending and stimulus is not what is causing the current bout of transitory inflation.
Is the Liberal government's pandemic stimulus spending to blame for the rising inflation rate?
Former Bank of Canada Governor Stephen Poloz says, 'That's not right.' #cdnpoli #ctvqp
Read more: https://t.co/x4ORH88DmC pic.twitter.com/vOFp1PMGmx
— CTV Question Period (@ctvqp) November 28, 2021
What does 'transitory' mean when it comes to inflation?
Former Bank of Canada Governor Stephen Poloz explains. #cdnpoli #ctvqp
Read more: https://t.co/x4ORH88DmC pic.twitter.com/F6hQhvIbxe
— CTV Question Period (@ctvqp) November 28, 2021
Next, from economist Stephen Gordon:
If you want to argue that governments should have *not* provided income supports because you think an inflation rate a couple of percentage points above target is a worse outcome than what would have happened without those measures, then go ahead and make tha argument. 2/
— Stephen Gordon (@stephenfgordon) November 28, 2021
You know, economists (including me) did indeed consider the possibility that the BoC's massive monetary expansion could lead to above-target inflation.
We also decided that after ten years of below-target inflation, this possibility was literally the least-bad outcome before us.
— Stephen Gordon (@stephenfgordon) November 28, 2021
Inflation is a problem we know how to solve; the Bank of Canada knows the recipe. 3/3
— Stephen Gordon (@stephenfgordon) November 28, 2021
A chart of the Consumer Price Index since 1995 plotted against a 2% trend (log scale). pic.twitter.com/fZb1zZyd1E
— Stephen Gordon (@stephenfgordon) November 29, 2021
So when Erin O’Toole and Pierre Poilievre start sounding off on inflation again, I know whose economic judgment I’ll be listening to (and it won’t be theirs).