The purpose of QE is to create inflation. Inflation means that prices of goods and labor go up. The only reason prices go up is if consumers or employers bid up

The purpose of QE is to create inflation. Inflation means that prices of goods and labor go up. The only reason prices go up is if consumers or employers bid up prices. What has never been explained in a satisfying way to me, is how QE results in consumers or employers deciding to bid up the price of goods, in a situation where interest rates are not the limiting reagent in lending decisions at the margin. At a certain point there are no investments with a positive real rate of return. If consumption desires are also completely satisfied, then you are in a post-scarcity economy. Almost by definition [1], when you reach that point, you are NOT in a recession. You don't have to be in a post-scarcity economy to have no lending opportunities at the margin. It is also very possible to have no additional lending opportunities, at any positive interest rate during a recession. This is especially so with the way that capital requirements work. If a bank doesn't have adequate capital ratios, they cannot lend, no matter what the rates.