I think that we may not be on the same page about calls for more QE and inflation (monetary policy).
First, we need more real economic growth and wage growth. Yellen couldn't even remember US U6 during her first testimony. hmmm Quite disappointing. Really. (In Europe the issue is a bit more complex and nuanced due to variation in inflation and unemployment levels between countries).
Financial asset price stability/inflation is good for bank balance sheets. That is not a problem, it increases the government's tax income via taxes on investment income (fiscal policy).
Please read the article (link below) because it covers both the financial and economic issues.
"I will never forget comments made by dairy producer Dean Foods (NYSE:DF) on its May 2011 earnings call:
So I think the most telling indicator for us that economic weakness and employment is the key issue driving soft volumes, is the fact that we continue to see, as -- in contrast to the historical norms, we continue to see volume pick up heavily at the beginning of each month, and then steadily erode through the month, being particularly soft in the last week to 10 days of the month. That just tells us that people are running out of money."
Do you really want consumer price inflation at this stage of recovery?
