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RIP Transitory Inflation, Long Live Quantitative Tightening

The Breakdown

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The Great Financial Crisis and Consumer Inflation

Even before the cove had crashed, there were some signs of liquidity ouble after the taper tantrum. The pandemic came and it washed everything out. And we were back to extreme central bank involvement. This time the balance sheet growth was even more pronounced. It took them a few years to actually work up the will to start allowing the balance sheet to reduce.

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