Quote:
Originally Posted by Firebot
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. |
Oh I get it, it's super fun to pile on the central banks. So, how long is transitory? I mean we didn't have much of an inflationary problem until a year ago (and that's really being quite generous with the data). Inflation is dropping now, which is fairly evident. So, we're at the one year mark if we take a few liberties. Seems pretty transitory?
The war is hardly a cheap excuse though. Have a look at the price chart for oil for 2022 and to the surprise of no one (well perhaps you?), the price rockets up as Russia invades because of supply fears.