![]() What the Bank did do, said the Bank’s tweeters, was buy existing government bonds that “don’t permanently add to the money supply. ![]() What’s the difference? 5/6- Bank of Canada August 25, 2022 We bought the bonds with settlement balances – a kind of central bank reserve – not with bank notes. We did □□□ print cash to pay for the #bonds. The Bank, it said, did purchase billions in Government of Canada bonds “but we did not print cash to pay for the bonds.” Keep reading to learn how we supported the economy from the shock of the pandemic.” People who kept reading, however, might have been a little mystified by the explanation. Last week, on its own Twitter account (who knew?), the Bank of Canada launched a tweet thread that seemed directed at Poilievre: “You asked us if we printed cash to finance the federal gov’t. Now Canadians will pay for it a second time with higher interest rates.” As part of his Conservative leadership message, Poilievre has - via Twitter - accused the Bank of “Printing money to pay for excessive government spending” that has in turn “caused today’s inflation. One of those critics has been Pierre Poilievre. The Bank of Canada is all aboard the big international campaign to beat inflation, but it is also waging a more local national war against critics at home, particularly critics who have taken to singling out Bank policies as a possible cause of rising inflation. This advertisement has not loaded yet, but your article continues below.
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