Inflation in the US is 2.1% ( I am not saying that this is the truth, but this is what they claim). So this is pretty well, if we think of how much money actually was printed. As far as for the asset bubble, I wouldn't pick New York and London in perticular.
You are viewing a single comment's thread from:
They just hit 2% after years of pumping.....that ought to tell everyone something.
The US Fed put $13T in the banks' vaults in addition to the other easing programs. With that amount of pumping, the inflation rate should have been double digits...it wasnt.
Well, after QE1 I could explain this to myself - when the crisis happened, we were already in deflationary situation. After QE2, the central banks were operating through open market operations, this is how they control inflation.
Still, 2 % is a bit unbeliavable for me, it doesn't make much sense.