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> and inflation are all now on an upward trend. Right? Not inflation. Inflation isn't going up much anywhere. It's a conundrum for central bankers. The old mod
by graeme 9y ago
> and inflation are all now on an upward trend. Right?
Not inflation. Inflation isn't going up much anywhere. It's a conundrum for central bankers. The old model may no longer work.
Normally, when unemployment goes low enough, wages and then prices go up. That hasn't really happened. Instead, house prices (in Canada) and consumer debt are rising.
- surement 9y ago> It's a conundrum for central bankers. The old model may no longer work. It is (and has been for a while) the goal of the Bank of Canada to keep inflation between 1% and 3%: http://www.bankofcanada.ca/core-functions/monetary-policy/inflation/ http://www.bankofcanada.ca/core-functions/monetary-policy/in... And it is not doing too bad: https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/inflation-cpi
- graeme 9y agoThey're raising rates while inflation is at the low end of their band. Normally, they wouldn't do that. Or rather, normally inflation would be going up now that the economy is. My point was that inflation and growth/employment may have decoupled. This article expands that argument at length: http://business.financialpost.com/news/economy/the-phillips-curve-is-broken-heres-why-that-is-keeping-economists-up-at-night http://business.financialpost.com/news/economy/the-phillips-...