The "extremely low inflation era" was also a time of very high inflation in long duration assets. It was an era where we saw one company after the another being

The "extremely low inflation era" was also a time of very high inflation in long duration assets. It was an era where we saw one company after the another being valued at over a trillion dollars. It was an era where startups without revenue could get 30bn valuations based on hot air and fanciful renderings. Printed money has to go somewhere. If it just sits somewhere it doesn't do anything. If it goes to investments you'll see inflation there. If it goes towards goods you'll see prices rise there. For inflation it doesn't matter whether you have a lot of money flowing at a low velocity or a smaller amount of money flowing at a higher velocity. When velocity of money drops because people are worried about the future then you can print money to compensate without producing inflation in either good/services or the stock market/real estate. During a stock mania velocity of money increases and idle money turns into investment money with asset inflation as a consequence. Wörgl -- economy suffered from too little money in circulation. Printing money fixed it. Japan -- economy has been stagnant for decades. Printing or borrowing at near 0% is fine for them because idle money doesn't do anything. When the Japanese economy starts growing again and velocity of money increases they'll get inflation, just like everybody else. Having no growth and a flat stock market for 30 years is not a good place to be at. It's all monetary, but the effects aren't immediate. Prices rise only when it's known the market will support these higher prices, and this price discovery takes time.