The Fed’s balance sheet and the missing inflation

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37 days ago (08 Jun 2020)  |  

Between 9 September 2008 – a few days before the collapse of Lehman Brothers – and 27 May 2020, the Federal Reserve’s balance sheet exploded from $926bn to $7,097bn, or by 667%. Yet the average inflation rate in this period was about 1.5%. In this issue of Infocus, Stefan Gerlach explains this apparent contradiction.

Click here to read the full article.

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