>If that's the case, why has inflation been so low in the US in the last two years, when the Fed undertook the largest expansion of it's balance sheet in modern history? i.e. it has printed more money recently, than at any other time in it's mandate - but inflation AND inflation expectations are still low.
That is because all that inflation has been exported to other countries. There are economies who have bet their growth on exports and depend on a strong dollar.
It's going to be just hilarious when China realises it can't actually do anything with all the shiny pieces of green paper we've posted them in exchange for most of their industrial output for a couple of decades, not to mention the whole Middle East.
That is because all that inflation has been exported to other countries. There are economies who have bet their growth on exports and depend on a strong dollar.