Quote:
Originally Posted by Slava
The pundits said the same thing at that point though. There was plenty of talk that they will never be able to get that money out of the system, gold as an inflation hedge was going to $5000, we're going to see hyper-inflation and everything else. Literally none of that came to pass.
I will say that I won't be surprised if we see the central bank(s) raise their inflation target to 3% from 2% though. I think that is coming, that Canada won't be alone in that, and it's going to be interesting in how they start to make that move.
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I think raising the target to 3% any time soon would be counterproductive because it would cement higher inflation expectations in the market.