If it's the road to currency collapse (presumably via inflation), that doesn't explain why inflation not only failed to materialize, but the Fed undershot its o

If it's the road to currency collapse (presumably via inflation), that doesn't explain why inflation not only failed to materialize, but the Fed undershot its own inflation targets for most of the next decade. As far as I understand it, it's not that the central banks are unaware of inflation pressures due to QE, it's that they see other deflationary pressures and try to use QE in a proportionate way to counteract them. Judging by the end result of minimal inflation, if QE is inflationary there was probably substantial deflation pressure. I don't think it is reasonable to be concerned primarily about inflation but not also deflation. A deflationary collapse not only leads to reduced investment in the future (why invest when prices are falling), but a big enough one will lead to bank failure, with people unable to get money out, the FDIC insurance program bankrupt, etc. The US domestic political situation is already dysfunctional as it is. It's hard to imagine it remaining stable through an inflationary or deflationary collapse. And if history is any guide, radical political changes in a crisis are often not positive ones, since someone who knows who to blame and promises to solve everything can often undermine democratic institutions. I'll take (some level of) stability, thanks. Anyway, to answer your last question, QE is determined by economists at the central bank and not directly by politicians. I think the main reason they are looking at unconventional monetary policy is that their traditional way to end recessions, lowering interest rates, stops being effective once interest rates are at zero.