Quantitative Easing and Inflation

quantitative easing the central bank prints bank reserves and then buys assets from commercial banks. As a result, the monetary base goes up and often what you see is M2, money supply will go up too. But in terms of causing inflation, the effect has historically been quite weak. If you look at Japan, which is the biggest QE or in the world, you had deflation while QE was going on in mass.

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