The MacroTourist

The MacroTourist

INFLATION SERIES (Part 2)

Why do we think lower interest rates create inflation anyway?

Kevin Muir's avatar
Kevin Muir
Sep 09, 2020
∙ Paid

In the first installment of my INFLATION SERIES posts, I outlined why Quantitative Easing on its own was not sufficient to cause inflation. I hopefully showed why “printing money” through Fed Balance sheet expansion results in nothing more than increased bank reserves sitting on commercial banks’ balance sheets.

Although optimistic that I convinced al…

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