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"it hasn't been true in the recent past, therefore it won't be true in the future" isn't a strong line of argument. Huge QE and extremely low interest rates can
by mxschumacher 6y ago
"it hasn't been true in the recent past, therefore it won't be true in the future" isn't a strong line of argument. Huge QE and extremely low interest rates can of course result in considerable inflation in the coming years.
- MiroF 6y agoNo the argument is that long-term inflation moving averages are determined by what has occurred in the past (because they're moving averages), so a much higher inflation now would actually be good. Due to a collapse in AD, that's not going to happen.