I keep seeing these wonderful charts of central bank balance sheets everywhere. Maybe it is because I am so adamant that Quantitative Easing (QE) isn’t going to create inflation that I notice them everywhere. But then again, there is a reason these charts pop up time and again. After all, the Federal Reserve has increased its balance sheet by $2.8tn (13.6% of US GDP) between January and July 2020. The Bank of England has expanded its balance sheet by $306bn (10.7% of UK GDP) and the ECB by $2.3tn (19.9% of Eurozone GDP) over the same time period. All this money has to go somewhere and when it arrives in the economy, it will not only create growth but also inflation.
Who’s afraid of Jerome Powell?
Who’s afraid of Jerome Powell?
Who’s afraid of Jerome Powell?
I keep seeing these wonderful charts of central bank balance sheets everywhere. Maybe it is because I am so adamant that Quantitative Easing (QE) isn’t going to create inflation that I notice them everywhere. But then again, there is a reason these charts pop up time and again. After all, the Federal Reserve has increased its balance sheet by $2.8tn (13.6% of US GDP) between January and July 2020. The Bank of England has expanded its balance sheet by $306bn (10.7% of UK GDP) and the ECB by $2.3tn (19.9% of Eurozone GDP) over the same time period. All this money has to go somewhere and when it arrives in the economy, it will not only create growth but also inflation.