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. “Inflation is indeed a global problem, but our inflation problem is very much made at home here in Canada,” testified Vivek Dehejia, associate professor of economics and philosophy at Carleton University. Dehejia said the roots of the problem go back to the financial crisis of 2008 and the “unconventional policies” that followed, namely quantitative easing (QE). QE is the practice of central banks purchasing bonds from financial institutions to increase the money supply and to favour investment and lending. “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 …
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