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House Hansard - 105

44th Parl. 1st Sess.
September 29, 2022 10:00AM
Context: House Hansard - 105 - Sep/29/22
Mr. Gabriel Ste-Marie
  • Sep/29/22 5:05:06 p.m.
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Madam Speaker, I thank my colleague and friend for the question, although when he mentioned the second CEGEP, I realized he was talking about UQAM. That is a serious mistake. I would have him know that the economics department at UQAM does good work. Keynes' work certainly contributed to the establishment and creation of the first central banks and highlighted their importance. The other thing that came out of his work is the famous equation for the quantity theory of money. It does not happen automatically and instantaneously. It depends on several other factors. Keynes particularly drew attention to the perceptions or psychology of people and economic players in the phenomenon of inflation. For example, the U.S. dollar is the global reserve currency. If a lot of money is printed, prices will rise much more slowly than in an economy where the currency is weaker, where foreign investors have less confidence in their currency. If they deviate slightly from established practice, prices can soar because confidence is lost more quickly in those economies. The central bank plays an important role, and it is important to respect its autonomy.
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