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Originally Posted by username
I didn't actually say interest rates = oil prices??? I was alluding to the fact that rates rising to 10% wouldn't be as crazy of an idea as the thought of 33 dollar oil in December of 08.
I'm very curious as to why you think interest rates would stay below 10% if we did incur hyper inflation? Based on what? That's what every central bank's real mandate is in the world, is to control inflation. The one real tool they have to do this is by controling interest rates. So how would they cool inflation if they couldn't raise rates over 10% should inflation hit say 12 percent???????
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I am saying that, with the experience from the 1980's and , thanks to computer, we lot more accurate and timely data available. I have a lot of faith in the BoC and unless something unseen comes up, I think we now have the tools to avoid a 1980's inflationary spike again.