Quote:
Originally Posted by Slava
^If the BoC had stopped raising rates, we'd be at about 2-2.5% inflation I think and very close to their desired figure. That's specifically due to the increased shelter figure.
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I think it's hard to know the counterfactual. That's true if they didn't raise rates and everything else turned out the same.
But I think I'd they hadn't raised rates the huge federal deficits and (and effective negative real rates) would have juiced the housing bubble like a y2k Era home run hitter, and we'd be in an even worse spot for housing inflation.