Then the government announced it would spend an extra $576 billion from 2019 to 2026. And $204 billion of this extra spending had nothing to do with the pandemic, according to the Parliamentary Budget Officer.
But out-of-control spending and never-ending deficits are only part of Canada’s inflation story. The other part is how the deficits were financed: the printing press. The Bank of Canada was on overdrive during the pandemic, printing about $370 billion by purchasing financial assets like government bonds between March 2020 and 2022.
Ottawa’s deficit spending directly ties into the money printing. For example, just two days after Freeland announced her plan to run a deficit of about $3 billion per week in 2021, the Bank of Canada announced its plan to purchase $3 billion worth of government debt per week.Article contentThe objective of the federal carbon tax is to increase prices.