The Liberals are driving inflation

Financial Post: "Policy-makers assumed the pandemic’s major effect was greater for demand than supply. The disruption to supply surprised the Bank of Canada, which in summer 2020 predicted “much of the initial decline in supply is likely to be relatively short-lived.” Central bankers are now hedging their forecasts, however. Bank of Canada Governor Tiff Macklem recently acknowledged price increases were more than temporary, partly because the Bank has downgraded its estimate of potential economic growth nearly a full point to 1.6 per cent. For his part, Fed Chair Jerome Powell has admitted that “Supply-side constraints have gotten worse. The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation.”"