The Fed's Balance Sheet Jumped $300B Last Week. Is That Inflationary?
The Breakdown
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Does a Mortgage Finance Market Cause Asset Price Inflation?
When the Federal Reserve bought $9 trillion in treasuries and mortgage backsecurities that had a direct consequence of lowering interest rates through their open market purchases, this is different because it's not an asset purchase. Now suppose instead they're creating mortgage market. So in a time you can finance your house purchase through a mortgage instead of having to put 100% down in cash. Does that lead to asset price inflation? In some sense, yes, but it's not the same thing as helicopter drop debt monetization.
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