[The Epoch Times, October 10, 2022](Reported by The Epoch Times reporter Noé Chartier / compiled by Li Ping)CanadaThe Liberal government has maintained that the currentpriceSoaring is a global phenomenon, but Canadacentral bankSoaring prices have increasingly become a problem in Canada.
At the Halifax Chamber of Commerce (HCC) meeting on October 6,central bankGovernor Tiff Macklem noted that someinflationIt’s global, it’s out of control, but some are increasingly reflecting domestic issues, where demand for goods and services is increasingly outstripping the economy’s ability to supply.
Macklem says coronavirus lockdowns have led toinflationFalling into negative territory, leading to substantial fears of prolonged deflation, in which case the central bank provided “extraordinary monetary support”, coupled with “extraordinary fiscal stimulus,” averting the Great Recession and enabling a rapid economic recovery .
MacCollum said that due to the impact of the global supply chain, it faces labor shortages andpriceRising businesses, now expanding services, are all signs of excess demand in the economy.
Who is to blame for soaring prices?
The Conservative Party and Conservative Party leader Pierre Poilievre pointed out that the Liberal government and the central bank’s large deficit spending and continuous money printing are the main culprits of inflation.
But when it comes to inflation, the Liberals say it’s a “global problem” under the influence of both the pandemic and Russia’s invasion of Ukraine. Treasurer Freeland and Prime Minister Justin Trudeau have been repeating the same rhetoric in Congress.
The Liberal government also said it also knew spending money would only make things worse, so the proposed inflation relief measures were cautious. People are cutting costs, and the government is also trying to avoid adding fuel to the fire.
Data Display,CanadaThe price index (CPI) in August this year was as high as 7%, down from 7.6% in July. In fact, not all developed countries are soaring prices, such as Japan and Switzerland, the recent price index is only 3% and 3.3%, but most developed country prices are soaring as bad as Canada, such as the Netherlands’ September price index as high as 14.5%.
Soaring inflation and rising energy prices are certainly one factor, but data show that the euro zone money supply has also risen sharply at the same time. Since the early spring of this year, the central bank began to reduce monetary stimulus through quantitative tightening, and no longer engaged in quantitative easing as in the past. Since March, the central bank has raised interest rates from 0.25% to the current 3.25%, and will announce the next round of interest rate policy on October 26.
Responsible editor: Wen Fang