[–] 11 points 3 years ago*

Hey wait I’ve seen this one before!

“ The dotcom bubble burst when capital began to dry up. In the years preceding the bubble, record-low interest rates, the adoption of the Internet, and interest in technology companies allowed capital to flow freely, especially to startup companies that had no track record of success.”

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  • [–] 1 point 3 years ago* (last edited 3 years ago)

    To me it makes perfect sense that they are more granular during times when volatility is up and inflation is a concern. Otherwise everyone would be (rightfully) complaining that they are using outdated models when inflation needs to be gotten under control.

    Besides, the new weighting is public. It didn't change all that much. I'm not going to run the numbers but the napkin math says 1) it wouldnt significantly change the headline rate and 2) it wouldnt change what we take away: it's artificially lowered by volatile items like gasoline, and underlying consistent categories are still too hot for the BoC. So while it's true that the headline rate is "bullshit", it's not because they changed the weighting.

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