Anti-Inflation Act
Encyclopedia
The Anti-Inflation Act was a Canadian
Act of Parliament
that was passed in 1975 by Pierre Trudeau
's government in order to slow down the rapidly increasing price and wage inflation
. The price and wage controls were enforced until 1978 and the Act was repealed in 1979.
Prior to 1975, the Bank of Canada
had warned the government about the dangers of the current inflation which was roughly 10% a year. In response to this, the government brought in the Act which created the Anti-Inflation Board to set wages and prices.
The Act proved highly contentious, and there was much debate over whether the federal government had overstepped its powers in enacting the law. Consequently, the government put a reference question
to the Supreme Court of Canada
, and in 1976, the Court passed down its opinion in the Anti-Inflation Reference where they said that the law was constitutional.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
Act of Parliament
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
that was passed in 1975 by Pierre Trudeau
Pierre Trudeau
Joseph Philippe Pierre Yves Elliott Trudeau, , usually known as Pierre Trudeau or Pierre Elliott Trudeau, was the 15th Prime Minister of Canada from April 20, 1968 to June 4, 1979, and again from March 3, 1980 to June 30, 1984.Trudeau began his political career campaigning for socialist ideals,...
's government in order to slow down the rapidly increasing price and wage inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
. The price and wage controls were enforced until 1978 and the Act was repealed in 1979.
Prior to 1975, the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
had warned the government about the dangers of the current inflation which was roughly 10% a year. In response to this, the government brought in the Act which created the Anti-Inflation Board to set wages and prices.
The Act proved highly contentious, and there was much debate over whether the federal government had overstepped its powers in enacting the law. Consequently, the government put a reference question
Reference question
In Canadian law, a Reference Question is a submission by the federal or a provincial government to the courts asking for an advisory opinion on a major legal issue. Typically the question concerns the constitutionality of legislation....
to the Supreme Court of Canada
Supreme Court of Canada
The Supreme Court of Canada is the highest court of Canada and is the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts, and its decisions...
, and in 1976, the Court passed down its opinion in the Anti-Inflation Reference where they said that the law was constitutional.