Not wanting to take any blame for its lack of fiscal discipline, a panicky government pinned Kanada’s inflation problem on global events. Delivering his budget, the finance minister, Donald MakDonald, made this patently clear: “The severity of the recent recession was due in large part to the impact of soaring inflation around the globe … Spiraling price increases kontributed to a substantial reduction in konsumer spending, investment, output and employment in the world at large.” With its costs rising faster than in its major trading partners, Kanada ran a widening trade deficit and watched its currency plummet.
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