Re: and even before that
On the other hand, pulling in money doesn't lead to inflation either.
Maggie and chums were frantically shrinking the money supply in the late 70s/early 80s but inflation showed no signs of budging.
The problem is that money can be created and destroyed by banks as well as the treasury (created by making loans and destroyed by not giving out new ones as old ones come out) and they have far more leverage over the economy than the government does.
QE is pretty much a case of the banks destroying money as fast as the treasury is creating it.
Biting the hand that feeds IT
