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Isn’t the issue exactly that money supply is increasing decoupled from the real economy? This is why quantitative easing hasn’t particularly increased consumer
by ximeng 6y ago
Isn’t the issue exactly that money supply is increasing decoupled from the real economy? This is why quantitative easing hasn’t particularly increased consumer prices, which are one important indicator of value.
- beaner 6y agoMoney supply rarely goes directly to consumers, it first has to be spent by the receiving parties and distributed to the wider economy before consumer prices begin increasing. But it doesn't happen without the prerequisite of money being printed.
- ximeng 6y agoThat hasn’t happened though - money has gone to corporations and asset holders. It hasn’t trickled down to consumers. Banks aren’t lending to small businesses.