3 ms·
I'm not saying it's not due to these stimulus measures, but I think the economics 101 lesson is kind of refuted by a decade of quantitative easing, which did no
by phreeza 5y ago
I'm not saying it's not due to these stimulus measures, but I think the economics 101 lesson is kind of refuted by a decade of quantitative easing, which did not cause significant consumer price inflation. The specifics of where you point the money spigot matter, it's more subtle than print money == inflation in today's highly complex economy.
- jdhn 5y agoThis stimulus is different from QE in the sense that it went directly to consumers. QE never went directly to consumers, but instead stayed with banks. Personally, I think you can see QE's inflationary effect in both the stock and housing market, but that's just me.
- phreeza 5y agoYea I have heard that argument, and I kind of buy it, but to a certain degree it still surprises me that different kinds of inflations can stay compartmentalized for so long. For example I benefited handsomely from the asset inflation in the stock market, and used some of my proceeds for consumer spending. My relatives benefited from inflated housing prices, sold their house and are now living it up in their retirement. Why doesn't more 'leakage' like this take place over a decade?