Quote:
Originally Posted by Slava
How long is transitory though? And in all honesty, were it not for the war in Ukraine, I think that a sizeable portion of the inflation we've seen doesn't hang around. Maybe, just maybe "these clowns" were right?
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They silently stopped using the word transitory in late 2021.
https://ca.finance.yahoo.com/news/ba...151801170.html
How can you be right when you even stop using the term that directed your policy for a year?
https://www.cnbc.com/2021/12/13/el-e...f-the-fed.html
Economic pundits in the US calls the fed transitory call as the worst inflation call in history. The BoC made that same horrendous call.
Inflation was skyrocketing way before Feb 2022 and the war is a cheap excuse to fall upon. It exacerbated inflation but inflation was already in a spiral by February and had already taken hold.
The BoC failed to adapt to changing economic conditions and made a horrendous call, period. That they are raising rates in order to combat unhinged inflation is evidence they failed.