4 ms·

Only an uncritical look at the situation would one think that the inflation was transitory.

BaseballPhysics 5y ago
Tell that to central bankers last year. You might not personally agree with it but that was the prevailing wisdom amongst economists until fairly recently. The US Fed in particular didn't start discussing rate increases until early this year, well after FY 2021 was over and 2022 budgets were set.
- ozzythecat 5y ago
  Your post is based on a belief the central bankers are some all knowing, objectively factual, 100% competent organization. The transitory inflation parade was so ridiculous that it turned into an internet meme. It’s just like the Fed was saying inflation was 2% when housing was skyrocketing across the country. They’ve literally redefined their measures to the point that their measures have become useless and a meme.
- BLKNSLVR 5y ago
  They're very trustworthy and have society's best interests at heart (they actually think they do, with this being a prime example because not saying that inflation is transitory could have provoked some kind of panicked reactions that could have caused more fundamental problems for society). The, admittedly few, sources of economic information I regularly seek out were saying that "transitory" was a joke from the first time it was mentioned. The combination of money printing, pandemic cheques, national debt, 0% interest rates, low-to-zero percentage bond markets (and probably numerous other things I can't remember right now) meant that raising interest rates could cause more harm than good (although it's inevitable sooner rather than later), and the same goes for slowing down the money printer. Using the word "transitory" was a one-use-only lie acting as a pressure relief valve, and it was at least semi-obvious to those paying attention.
jnwatson 5y ago
Regardless, it is probably moot now. The impact of oil and embargo will have wide-ranging inflationary effects.

Tell that to central bankers last year. You might not personally agree with it but that was the prevailing wisdom amongst economists until fairly recently. The US Fed in particular didn't start discussing rate increases until early this year, well after FY 2021 was over and 2022 budgets were set.

ozzythecat 5y ago
Your post is based on a belief the central bankers are some all knowing, objectively factual, 100% competent organization. The transitory inflation parade was so ridiculous that it turned into an internet meme. It’s just like the Fed was saying inflation was 2% when housing was skyrocketing across the country. They’ve literally redefined their measures to the point that their measures have become useless and a meme.
BLKNSLVR 5y ago
They're very trustworthy and have society's best interests at heart (they actually think they do, with this being a prime example because not saying that inflation is transitory could have provoked some kind of panicked reactions that could have caused more fundamental problems for society). The, admittedly few, sources of economic information I regularly seek out were saying that "transitory" was a joke from the first time it was mentioned. The combination of money printing, pandemic cheques, national debt, 0% interest rates, low-to-zero percentage bond markets (and probably numerous other things I can't remember right now) meant that raising interest rates could cause more harm than good (although it's inevitable sooner rather than later), and the same goes for slowing down the money printer. Using the word "transitory" was a one-use-only lie acting as a pressure relief valve, and it was at least semi-obvious to those paying attention.

jnwatson 5y ago

Regardless, it is probably moot now. The impact of oil and embargo will have wide-ranging inflationary effects.