Essay on the inflation picture
Inflation is stubborn in some countries. Deflationary and inflationary scenarios - essay on the inflation picture मंहगाई पर एक आलेख Quantative Easing (QE), was applied in US and Europe since 2008 for at least 10 years, when Central Banks bought large amount of bonds to a tune of $1T every year, effectively printing money without a solid foundation. Contrary to the text-book theory that QE should cause high inflation, paradoxically the world witnessed a deflationary scenario (for more than 10 years) especially in Europe where ECB indulged in QE too. There was no inflation in US and Europe for too long. In Europe bond rates (Bund and Swiss and others) became negative due to deflation. That means companies had to pay a fee for parking their money. For normal people interest rates were zero on their deposits, that continued for more than 10 years. Poor savers got nothing. In order to explain the grotesque failure of the textbook theory, developed an argument based upon a non