Ross McKitrick: Canada will not escape. Aside from cross-border transmission of price shocks, our monetary expansion was dramatic as well, with Bank of Canada asset holdings jumping from C$105 billion in March 2020 to C$450 billion in December 2021, most of which consisted of purchases of Canadian government bonds. And we have experienced similar negative supply shocks, including policy-driven restrictions on energy production, expansion of the regulatory burden and food-sector contraction due to war-induced price changes. The Bank of Canada has begun to shed assets (C$20 billion since December 2021) but to get control of the situation it will need to take sustained aggressive action.
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