4 ms·

Japan didn't experience much if any inflation in the early 2000s QE after the 2007 financial crisis also didn't cause much inflation

SamReidHughes 5y ago
QE made the inflation rate above-zero instead of being negative. Its purpose was to stave off deflation.
- trinovantes 5y ago
  And in both examples, inflation did not skyrocket like it is today. Therefore QE is not solely responsible for most of the inflation that we are seeing
coryrc 5y ago
Look at housing prices and tell me again there's been "not much inflation". Who cares if goods which are ten percent of your spending went down in price when housing and healthcare skyrocketed?
- trinovantes 5y ago
  Skyrocketing housing prices are caused by restrictive zoning and speculative investors than the 2007 QE Not to mention there are some real estate markets that have lost value in recent years
- slg 5y ago
  Look at computer prices and tell me again there has been inflation. Cherry picking one or two categories which are impacted by countless other issues does nothing to prove your point.
  - Ekaros 5y ago
    Top of the line smartphones certainly have gotten lot more expensive.
    - slg 5y ago
      You actually hit on a great example of why inflation numbers are flawed. The product you are comparing is "top of the line smartphones". However, the 2022 version of that product is barely even comparable to the 2012 version. The phone, the computer, the car, the house, or the medical care that you purchase today is greatly improved compared to the same item you would have purchased in the past. That improvement is ignored in inflation calculations.
      - chii 5y ago
        It's not ignored. There's an adjustment called the hedonic adjustment for this very purpose. However, I personally don't really agree with it.
        slg 5y ago
        Phone are the only item I listed that receive a hedonic adjustment and you can't exactly quantify the difference in quality between an iPhone 12 and a Motorola StarTAC. They are a fundamentally different products.
  - coryrc 5y ago
    It's not cherry picking to pick the two categories which make up the majority of half of American's spending.

SamReidHughes 5y ago

QE made the inflation rate above-zero instead of being negative. Its purpose was to stave off deflation.

trinovantes 5y ago
And in both examples, inflation did not skyrocket like it is today. Therefore QE is not solely responsible for most of the inflation that we are seeing

coryrc 5y ago

Look at housing prices and tell me again there's been "not much inflation". Who cares if goods which are ten percent of your spending went down in price when housing and healthcare skyrocketed?

trinovantes 5y ago
Skyrocketing housing prices are caused by restrictive zoning and speculative investors than the 2007 QE Not to mention there are some real estate markets that have lost value in recent years
slg 5y ago
Look at computer prices and tell me again there has been inflation. Cherry picking one or two categories which are impacted by countless other issues does nothing to prove your point.
- Ekaros 5y ago
  Top of the line smartphones certainly have gotten lot more expensive.
  - slg 5y ago
    You actually hit on a great example of why inflation numbers are flawed. The product you are comparing is "top of the line smartphones". However, the 2022 version of that product is barely even comparable to the 2012 version. The phone, the computer, the car, the house, or the medical care that you purchase today is greatly improved compared to the same item you would have purchased in the past. That improvement is ignored in inflation calculations.
    - chii 5y ago
      It's not ignored. There's an adjustment called the hedonic adjustment for this very purpose. However, I personally don't really agree with it.
      - slg 5y ago
        Phone are the only item I listed that receive a hedonic adjustment and you can't exactly quantify the difference in quality between an iPhone 12 and a Motorola StarTAC. They are a fundamentally different products.
- coryrc 5y ago
  It's not cherry picking to pick the two categories which make up the majority of half of American's spending.