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> Yet there was not this inflation during the Fed balance sheet runup in 2008-2018...... Could you think of something which happened in 2008 which might have i
by Gareth321 5y ago
> Yet there was not this inflation during the Fed balance sheet runup in 2008-2018......
Could you think of something which happened in 2008 which might have impacted the velocity of money in the global economy, despite the aforementioned QE? QE works great following a recession. For quite a number of years later, in turns out. But not forever. At some point the economy recovers and continuing to pour gasoline on it stimulates it beyond the target inflation zone.
- JumpCrisscross 5y ago> Could you think of something which happened in 2008 which might have impacted the velocity of money in the global economy You and the comment you’re responding to agree on the Fed’s balance sheet being insufficient per se to explain core or non-core PCE. It's a complicated phenomenon.
- Gareth321 5y agoThanks for clarifying. I guess I missed that.