The finance minister said that, while inflation is a global problem from which no country can insulate itself, the Liberal government will help Canadians weather this newest storm.
She affirmed the government’s commitment to fiscal restraint, saying that the ability to spend is not infinite and the Liberals are withdrawing fiscal stimulus. She said the restraint in April’s budget was intentional: “At a time when inflation was elevated, we knew we needed to be careful not to increase aggregate demand.”
Yet, with the sleight of hand of a skilled magician pulling a white rabbit from a top hat, she announced an $8.9 billion “affordability plan” that, if it does nothing else, will increase aggregate demand. A government that says it doesn’t want to work at cross-purposes to the Bank of Canada is now doing exactly that.
No comments:
Post a Comment