Quote:
Originally Posted by opendoor
Unprecedented? Maybe if your memory only goes back 5 years. In the last 2.5 years Canada's M2 has increased by about 28%, for an annualized rate of just over 10%. Compare that to prior periods:
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You are deliberately comparing a short year time M2 growth window while counting 2022 to a 10 year window average and honestly don't see a problem with this?
https://www.ceicdata.com/en/indicator/canada/m2-growth
M2 clearly spikes significantly in 2020-21 comparatively to other time periods, last time period being early 1980.
And counting 2022 in your percentage calculation is dishonest as we are in a quantitative tightening phase and in the process of overcorrecting for past mistakes. We are removing money from the market trying to correct the mistakes of the past year and a half. Remove 2022 and do a year to year comparison, pick 2020 or 2021 and do an apple to apple comparison.
https://tradingeconomics.com/canada/money-supply-m2
If you succeed in arguing on a technicality and that money printing is precedented from 40 years ago in a high inflation / high interest rate environment, it doesn't change our predicament, as central banks back in the day had policies with high interest rates and inflation in mind, and did not peg our policies to a 2% inflation CPI. Not sure the point of arguing on semantics just to prove the term unprecedented wrong when our economic ecosystem today is quite different then 40 years ago.