Post
Topic
Board Economics
Re: Quantitative Easing
by
blackhathasher
on 28/05/2014, 18:55:51 UTC
That is your notion of inflation, not the one you will read in most textbooks on economics.

um.. thats not a notion.. that is what inflation is.

Quote
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4]

I think that's pretty clear and about as textbook as it gets.

And as facts have already been established Quantitative Easing is the backup plan (Inflation++) when the regular inflation rate isn't producing the desired results.

Inflation and Quantitative Easing are ROOTED in increasing the mass of currency.