Quote:
Originally Posted by opendoor
What current Federal government policies/programs do you think are going to lead to higher inflation (particularly considering that inflation is largely an international phenomenon that any one country only has partial control over)?
Virtually all of the supports I'm aware of are directed at the poorest of the poor. And those people are going to be spending money on things that have relatively inelastic demand (food, shelter, etc.), so I'm struggling to see how them having slightly more money is going to drive inflation. More likely, it'll either keep them fed and housed, or it'll help keep them from going into debt to spend the same money. Neither of those create inflationary pressures to any great degree.
Now if the government was creating a bunch of money to pay for all that, then fair enough; that's something that could put pressure on inflation. But that's not happening at all. 2022's increase in M2 in Canada was the 3rd or 4th slowest monetary supply growth in the last 50 years and the Bank of Canada is continuing to roll assets of its balance sheet.
|
What is M2 again? Genuinely curious.