" why so much QE has resulted in so little inflation"
The most common theory is that this loose equity sloshing around has gone into stocks and bonds.
QE is keeping the stock market up.
The most common theory is that this loose equity sloshing around has gone into stocks and bonds.
QE is keeping the stock market up.
Inflation has simply been confined to some select assets. It's all going to come back into the mainstream economy unless the next recession/depression ends up being extremely deflationary before that happens.
Currently, we are hitting very low unemployment so wages have nowhere to go but up.
The weird one is housing: as rates stay low, people take on bigger and bigger mortgages leading to 'housing inflation' ... but it's generally not measured as inflation so it's kind another form of stealth inflation.
There seems to be something wrong either with the unemployment stats or something else is not quite right.
As long as the money that is confined in housing assets doesn't reach the "lower" market of people who actually need to spend that money, it's perfectly logical to me that it doesn't appear as price inflation in the general economy.
Nowadays we're seeing a decrease in the last category, and an increase in "underemployment" and people holding multiple low-quality jobs to make ends meet. They aren't "unemployed", but they're not in a strong negotiating position either.
I am not actually positive on wages increasing. I feel like there is enough information asymmetry in the market that wages will stay depressed.
some of us were paying attention to the shell game