/biz/ - Business & Finance

>>30062112
>>30062112
one example. if you want to learn why QE is deflationary.

https://www.youtube.com/watch?t=4498&v=14I1BdncYVo&feature=youtu.be

>It means, unequivocally, that low rates are not stimulative at all, rather they are indicative of monetary contraction. Another way of saying that in mainstream terms is if a central bank “needs” to stimulate year after year after year it isn’t actually stimulating anything, it is being slowly strangled by the same monetary noose in sympathy with the real economy. The real economy loses function and activity while the central bank loses (rightfully) credibility.

>>30032358
look at that chart>>30032198 deleveraging and deflation
because economics and what actually happens in markets is counter-intuitive.
QE money printed is "stuck" as bank reserves. it doesn't make it out to the real economy. add the low velocity of money. all the QE and printing that's already done since 1997 has done is supported inflation at 2% annually; without it prices would have cratered.
50% inflation over 20 years is exactly how much food prices have inflated, that works to be about 2% over 20 years. that's "normal"
The real economy is not growing at all.

At the same time, it has distorted markets and created massive asset bubbles. So yes there's inflation in certain sectors and even some parts of the CPI.