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> 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 bet

> 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 ago
They'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-...