INFLATION IN CANADA: A HISTORICAL AND CURRENT ANALYSIS

Resumen

This article seeks to explore and assess the ramifications of inflation on the Canadian economy, with an emphasis on its impact on businesses and the general populace. Guided by a qualitative, documentary methodology, the study incorporates a comprehensive review of the current state of inflation in Canada, complemented by insights from Rogers (2023), Armstrong (2023), Heinzl (2023), and Rodriguez (2022). Preliminary findings elucidate the mounting challenges faced by Canadians, from eroding purchasing power to businesses grappling with soaring costs. Notably, the role of central banks, particularly the Bank of Canada, in potentially exacerbating or alleviating inflation is critically examined. While larger sectors like the housing and oil industries have maneuvered to capitalize on the situation, small businesses find themselves in precarious positions, as reflected in the restaurant industry's struggles in Alberta. Furthermore, the discourse delves into potential future scenarios, including the debated proposition of eliminating central banks as a remedy for inflation. Recommendations encompass a call for a balanced approach, emphasizing reforms in central bank policies, coupled with increased transparency and accountability. The article underscores the need for strategic interventions to navigate the multifaceted challenges posed by inflation in Canada.