Re:What Economists Still Don’t Get About the 2008 Crisis
by pas on Sunday August 05, 2018 @11:32AM
(#17691806)
Also, QE helped the banks, and banks were not started to offer lower interest rate loans to consumers. (Nor have they decreased other costs of accessing money - such as credit card fees etc.) So no inflation happened.
Re:What Economists Still Don’t Get About the 2008 Crisis
by wuliwong on Monday July 30, 2018 @05:05PM
(#17648032)
Why does it require people to understand what is happening to increase or reduce price inflation?
Re:What Economists Still Don’t Get About the 2008 Crisis
by captain_perl on Tuesday July 31, 2018 @04:18AM
(#17651444)
Because the economy is people's demand.
Re:What Economists Still Don’t Get About the 2008 Crisis
by jaxtellerSoA on Tuesday July 31, 2018 @03:45PM
(#17656405)
Exactly.
Inflation doesn't work as simply as you might expect. What people believe is actually a big piece of the puzzle. As proof of this look at the Paul Volcker interest rate hikes, that squashed run-away inflation. While his hikes did eventually work, in the short term they did nothing to combat inflation. Why? Because people didn't believe they would help (in fact many thought it would make the problem worse). You had to get the minds of the the investors and spenders on-board before you actually see results (despite what the math might say).
I think the reason QE hasn't caused much inflation is because people either don't care or don't understand (most likely the latter). I am sure intentionally obscuring "printing shit tons of money" as "Quantitative Easing" also helps with the psychological factor so as to not panic the masses.