This is Arctic Cotton(Eriophorum callitrix) from Greenland. It is also called arctic cottongrass, suputi and pualannguat in Inuktitut. When we lived in Anchorage this was very common and we called it Alaska cotton.
Jan acquired these Inuktitut "old time baby pants" in Anchorage in 1969. They are made of caribou skin edged with soft rabbit fur.
In daily life they were lined with moss or clumps of Arctic Cotton which was discarded when soiled.