To prove the point, since the 2009 recovery on the back of global QE. M2 Monetary supply increase in:
- Europe: 2.3% - USA: 3.5%
The fact is all the QE going on around the world is just enough to offset the huge amount of de-leveraging going around the world including namely the banks. An increase in monetary base does not result in an increase in monetary supply. This was the case before the crash also as Europe's money supply increase 7% p.a. for a decade yet had inflation of around 2-3%.
