People get ready: An era of shortages is going to replace our era of plenty

The C D Howe Institute in Toronto published on 5 December an Intelligence Memo written by William White. Essentially a short letter written to the Canadian Minister of Finance, the Memo identifies six sets of negative, future  supply shocks that will put upward pressure on Canadian prices in the next few years. Adding to the difficulties, the Memo also identifies a number of sectors where higher investment spending will be required – not least to deal with environmental issues. To mitigate inflationary pressures, and to  avoid a potentially dangerous reliance on tighter monetary policy, White implies that consumption should be constrained through targeted fiscal measures.