You're assuming the QE cannot be maintained on the Fed's balance sheet indefinitely. Substitute something else for "the Fed" where appropriate. The reason you

You're assuming the QE cannot be maintained on the Fed's balance sheet indefinitely. Substitute something else for "the Fed" where appropriate. The reason you have (relative) inflation of housing (besides subsidies and throttling of supply ) is because there's no inflation other than that. With no growth in productive sectors, people turn to rents. Keep it up long enough, and they forget how to do anything else.