History shows that a rise in the cost of living follows excessive growth in the money supply
Article content
Former Bank of Canada Governor John Crow was once asked whether the money supply had been used in the Bank’s economic model and forecasts he had just presented. His response was that although money was not in the model he regularly looked over his shoulder to be sure the money supply was not growing too quickly. During his time in office, both the money supply and prices grew at satisfactorily moderate rates.
