In my opinion, that certainly could not hurt the situation. In a way, it could help minimize the current pressure, which is causing an inflationary spiral. I note that the inflationary spiral is caused by significant pressure on the markets, which are unable to meet demand. This is primarily due to supply chains that have been hit hard by the pandemic. The reopening of markets has unfortunately put major pressure on supply chains.
The current labour shortage also contributes to the inflationary spiral. We can clearly see that there is a significant increase in wages. For example, I would refer to the forum that we hold each year, in the fall, concerning wage forecasts for the coming year.
The estimates from all the experts who presented outlooks for wage increases in 2022 foresaw increases of 2.9% to 3.1%. We are well above that. In some industries hard hit by the labour shortage, the increase is between 25% and 30%.
A series of events, mostly linked to the present economic climate, have significantly increased that pressure. We are in an inflationary spiral.
Through the central bank, the government has a role to play in reducing inflationary pressure. Ultimately, however, everyone will pay because interest rates are going up. At some point, there may be a recession, which would have significant economic repercussions. Finding a balance is not easy. What will help slow the current inflationary spiral is not a single measure, but a combination of several measures.
Canada can draw inspiration from what is being done elsewhere.