TSX:AX.PR.E - Post by User
Comment by
Torontojayon Nov 24, 2024 8:49pm
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Post# 36328335
RE:This is the joke
RE:This is the joke
garyreins wrote: Inflation got out of control because 2 years of COVID lockdown causing pent up demand, free money via stimulus and borrowing at almost 0, throw in some quantitative easing and supply chain.
Now 4 years later they're trying to blame it on Middle East, Trump, the fact that government does a GST cancellation for 2 months, all just bs to keep the narrative going. IMF said it's time to move on the big price increases are tamed yet these central bankers wanna keep it going analyzing every CPI print for policy
Quantitative easing doesn't directly cause inflation. It causes asset price inflation, which through the wealth effect can contribute to real inflation in the economy. This is why QE didn't cause inflation after the GFC because you can't buy groceries with bank reserves. Also, during the GFC QE brought forth a deleveraging cycle which completely negated the growth in the money supply.
QE is not money printing. QE prints bank reserves.