Quote:
Originally Posted by Firebot
https://www.ctvnews.ca/business/bank...tion-1.6076297
Everyone is to blame except the Bank of Canada, according to the Bank of Canada.
These clowns where calling inflation transitory last year at this time. They left interest rates at historically low levels while this unprecedented printing of money through stimulus and cheap credit continued well past necessary and now pointing fingers to say we shouldn't have borrowed so much.
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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:
1970-1980: 15.7% a year
1980-1990: 10.77% a year
2007-2009: 9.97% a year
2020-2022: 9.14% a year (assuming 2022 keeps its current pace).
So in a short window centered on a crisis situation, Canada's monetary aggregates are still increasing at a lower rate than they did as a matter of course during the '70s and '80s or what they did during the financial crisis. And 2022 is on pace to see the slowest growth in M2 in 25 years, so the risk of year after year increases in money supply like happened in prior decades is basically zero.