Mr. Sinclair Stevens (York-Simcoe):
Mr. Speaker, my initial question is addressed to the Prime Minister. It centres on the report issued today by the Centre for the Study of Inflation and Productivity which, as we know, is a body that was established last summer at the request of the Prime Minister. This body has disclosed that 33 per cent of our inflation over the past two years is due to the falling dollar, a subject which we have debated so often in this House. That is, 6.5 per cent of our inflation is due to the simple fact that the dollar has fallen so fast and so far.
On June 29 I asked the Prime Minister if he was aware that a local commentator had said that the cost of the falling dollar on inflation was 4 per cent. The Prime Minister on that date said he had not done the calculation. Would he tell the House, now, does he agree with the body that was set up at his own request, that in fact 33 per cent of our inflation is due to his falling dollar?
Subtopic: THE CANADIAN ECONOMY
Sub-subtopic: DEVALUED CANADIAN DOLLAR-EFFECT ON INFLATION