A lot has happened since I last was able to post on the site. The pandemic, the horrible war in Ukraine, the re-emergence of inflation , the reduction in the rate of unemployment, the agreement between the Liberals and the NDP in the Canadian parliament, the Bank of Canada’s decision to raise interest rates. Because of all these events public policy is more complex than ever. But one thing remains fairly certain Keynes and post Keynesianism remains more relevant than ever.
The problem of supply chain disruption and its and the oil cartels’ impact on the rate of inflation which appears significant has also given the anti Keynesian neoconservatives the opportunity to falsely blame the inflation that exists on deficit spending. This misleading diagnosis needs to be corrected before policy players are seduced by it.As usual the Globe and Mail has been leading the charge from the neocon point of view.
Currently unemployment is still 5. 5% while inflation has risen to 5.7 % . But the inflation is largely due to oligopoly price increases and supply chain effects exacerbated by the war in Ukraine and the ongoing pandemic not expansion of the money supply nor excessive deficit spending or debt monetization by the central bank.
The supply side inflation is also a global phenomenon. Euro country inflation has risen to 7.5 % as of March. Inflation excluding food and fuel in the ECB rose to 3.2 % from 2.9 %. The unemployment rate in the eurozone in February was 6.8%.Oil prices for WTI oil hovers around 99 to 100 dollars a barrel, more than 40 % higher than the price in June of 2021.
I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
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