Top x American

The heated debate over inflation/deflation continues. Depending on time frame and data points, the pendulum appears to be swinging back and forth between the two opposing camps which stand firm and passionately support their views.

The supporters of inflation point to the massive stimulus efforts by the Fed and other central banks which lowered interest rates to historically unseen levels and they used an array of easy money measures including quantitative easing to spur economic activity and growth. Such easy money policies should, in theory, lead to inflation somewhere down the road, so goes their argument.