I’ve got a bit of a hypothesis about why we’ve seen a decade+ of near-0 rates with virtually no inflation. It’s all about the wealth disparity.

The wealthiest already have huge amounts of money saved and invested in the markets. Adding to the money supply primarily benefits those who already have the most money. So something like 80% of new money winds up in the hands of the top 1%, who save it, consume no extra (aside from stocks), and have no impact on the basket of goods.

I think this also partly explains the high P/E ratios we’ve seen over the past decade+.

Nothing in economics is that simple. But this feels reasonable to me. Anything I’m missing?