Inflation or no Inflation

“One of the biggest dividing lines in the views of investors for the coming years will be if the current crisis and the fiscal and monetary stimulus will lead to inflation. As I have said before, I used to be in the camp that expected inflation after the financial crisis but have changed my mind. What the aftermath of the financial crisis has shown is that monetary stimulus and QE do not end up in the real economy because the lending channel is broken and banks are reluctant to lend to businesses and households at low interest rates. It simply isn’t profitable enough to do that.” Continue reading.

Source: Klement on Investing
4-minute read.