Tiff Macklem Is Full Of Shit
The Bank of Canada just issued its’ annual report (at 8:19PM EST) and it contains some absolutely stunning narrative construction. Tiff Macklem sets the scene in the Governor’s Foreword: At the start of 2022, inflation was already elevated. This largely reflected widespread and persistent supply chain disruptions amid strong global demand for goods. Then in February, Russia’s unprovoked invasion of Ukraine caused global prices of oil and other commodities to rise sharply , pushing inflation even higher. And from there, inflation broadened and intensified. This reflected the pass-through of higher energy, food and shipping costs to many goods and services prices. It also reflected rising price pressures domestically. When the Canadian economy fully reopened, consumers wanted to catch up on what they had missed, but businesses couldn’t keep up with the increased demand . This put upward pressure on the prices of many services. This simplified explanation - laying the blame evenly ...