<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Several explanations have been put forward for the observation that massive inflation has not appeared as a result of the explosive monetary growth generated by quantitative easing that was in 2008. Several plausible explanations have been put forward for this observation, but none of them can explain the huge gap between monetary inflation and price inflation. The alternative explanation presented in this paper is that monetary inflation is more reflected in stock prices than the CPI. It is demonstrated that by adjusting the CPI to reflect changes in stock prices, the gap between the trends of the money supply the CPI can be almost eliminated.</p>
</abstract>

Several explanations have been put forward for the observation that massive inflation has not appeared as a result of the explosive monetary growth generated by quantitative easing that was in 2008. Several plausible explanations have been put forward for this observation, but none of them can explain the huge gap between monetary inflation and price inflation. The alternative explanation presented in this paper is that monetary inflation is more reflected in stock prices than the CPI. It is demonstrated that by adjusting the CPI to reflect changes in stock prices, the gap between the trends of the money supply the CPI can be almost eliminated.

The Quantity Theory of Money, Quantitative Easing and the Missing Inflation Phenomenon

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

Several explanations have been put forward for the observation that massive inflation has not appeared as a result of the explosive monetary growth generated...

The Quantity Theory of Money, Quantitative Easing and the Missing Inflation Phenomenon

Published Online: Jun 07, 2024

Page range: 71 - 88

Received: Mar 13, 2023

Accepted: Jun 28, 2023

DOI: https://doi.org/10.2478/jcbtp-2024-0013

Keywords
Quantitative Easing, Monetary Inflation, Price Inflation, Quantity Theory of Money

© 2024 Imad A. Moosa et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Quantity Theory of Money, Quantitative Easing and the Missing Inflation Phenomenon

Published Online: Jun 07, 2024

Page range: 71 - 88

Received: Mar 13, 2023

Accepted: Jun 28, 2023

DOI: https://doi.org/10.2478/jcbtp-2024-0013

KeywordsQuantitative Easing, Monetary Inflation, Price Inflation, Quantity Theory of Money

© 2024 Imad A. Moosa et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Quantitative Easing, Monetary Inflation, Price Inflation, Quantity Theory of Money