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> As it turns out inflation is not directly connected to the issuance of new money, although it does contribute Are you saying that because of QE? If so I don'
by Gustomaximus 7y ago
> As it turns out inflation is not directly connected to the issuance of new money, although it does contribute
Are you saying that because of QE? If so I don't buy it. QE is an ongoing experiment. We'll see.
- runeks 7y agoIt depends on where the newly issued money goes. Newly created money being used to purchase financial instruments (e.g. corporate bonds) has no reason to cause inflation. Quite the opposite, actually (increased investment increases productivity and decreases prices). Which is exactly what we’ve been seeing for the past decades (speaking long term).