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> QE has no impact on inflation This is the most false statement ever. Anything that increases the money supply will increase inflation.

tick_tock_tick 4y ago
> Anything that increases the money supply will increase inflation. Except we have actual numbers and history to prove that false....
- chasebank 4y ago
  Source? Did we not have rapid asset inflation since QE started in 08? Inflation pops up in all sorts of ways, not just blanket across the board.
  - drexlspivey 4y ago
    Typically people mean core goods (CPI) when they say inflation not stocks and crypto
    - gg82 4y ago
      If only people could pay core goods CPI to live and house themselves!
    - deleted 4y ago
      [deleted]
    - bequanna 4y ago
      Umm… Housing? Energy?
      - drexlspivey 4y ago
        CPI includes all that
- fallingknife 4y ago
  Here are the numbers to prove it true https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS
  - drexlspivey 4y ago
    What does this graph prove exactly? It goes up steadily for decades where there weren't any inflation, and then had a sudden bump 2 years before the inflation started. Inflation was caused by the massive fiscal spending (stimmies) not the FED
    - fallingknife 4y ago
      The fed printing was done to pay for the stimmies. Government spends more than it takes in in taxes so it borrows. But it borrows so much that the market won't lend it the amount it needs to borrow at the rates it wants to borrow at. So the fed prints money and lends it to the government. They call this "quantitative easing" so they don't have to say money printing. Look at this chart of treasuries held by the fed. Notice how it mirrors the money supply. https://fred.stlouisfed.org/series/TREAST https://fred.stlouisfed.org/series/TREAST
  - dools 4y ago
    That's a graph that shows M2, not inflation. QE does have an impact on M2, but bank lending behaviour is not directly reserve constrained, so it has little impact on inflation.

tick_tock_tick 4y ago

> Anything that increases the money supply will increase inflation. Except we have actual numbers and history to prove that false....

chasebank 4y ago
Source? Did we not have rapid asset inflation since QE started in 08? Inflation pops up in all sorts of ways, not just blanket across the board.
- drexlspivey 4y ago
  Typically people mean core goods (CPI) when they say inflation not stocks and crypto
  - gg82 4y ago
    If only people could pay core goods CPI to live and house themselves!
  - deleted 4y ago
    [deleted]
  - bequanna 4y ago
    Umm… Housing? Energy?
    - drexlspivey 4y ago
      CPI includes all that
fallingknife 4y ago
Here are the numbers to prove it true https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS
- drexlspivey 4y ago
  What does this graph prove exactly? It goes up steadily for decades where there weren't any inflation, and then had a sudden bump 2 years before the inflation started. Inflation was caused by the massive fiscal spending (stimmies) not the FED
  - fallingknife 4y ago
    The fed printing was done to pay for the stimmies. Government spends more than it takes in in taxes so it borrows. But it borrows so much that the market won't lend it the amount it needs to borrow at the rates it wants to borrow at. So the fed prints money and lends it to the government. They call this "quantitative easing" so they don't have to say money printing. Look at this chart of treasuries held by the fed. Notice how it mirrors the money supply. https://fred.stlouisfed.org/series/TREAST https://fred.stlouisfed.org/series/TREAST
- dools 4y ago
  That's a graph that shows M2, not inflation. QE does have an impact on M2, but bank lending behaviour is not directly reserve constrained, so it has little impact on inflation.