Hacker News Reader

That and the big concern about QE was the impending inflation that was going to happen, and then anytime now and ... then didn't.

Those tools seem not just powerful, but at times have had limited side effects that folks who don't like them insist will happen.

I wouldn't go swinging those tools for no reason or for little cause, but they seem effective.

View on HN

> QE was the impending inflation that was going to happen

QE backstopped the inflation that already happened during the credit boom.

By supporting housing prices (and other associated bad debt) they essentially prevented a deflationary spiral, which one could think of as an unwinding of inflation.

End result: ever higher housing prices and generally stagnant incomes.

It's a complex topic and a deflationary spiral was probably worse for the economy, but QE did affect inflation.

Reply on news.ycombinator.com