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JUL 31, 2013 - Business Insider

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Why QE Never Caused The Raging Inflation That So Many People Expected

Larry Kudlow has declared the deficit hawks (the inflationistas) the losers of the long raging inflation debate (see here for details). After almost 5 years of QE and thousands of pundits shrieking over high inflation the debate appears to have been convincingly won by the inflation doves (those who thought inflation would be low despite QE).  But Larry Kudlow asks an important question – why didn’t QE cause high inflation?   Let’s take a look. First of all, I think QE did cause some inflation.  Contrary to popular mythology, I don’t say QE does ... Read More

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