It comes from a central bank, yet is it money? This has taken too many years, but over the last several, interest in, and debate over, what bank reserves are and maybe ought to be has blossomed. Around the world, “monetary” authorities have linked their activities to real economic consequences: large scale asset purchases (LSAP) such as quantitative easing (QE) have been promised to deliver inflationary boosts to faltering economic conditions.
There has been an explosion in the number of QE’s undertaken and the (balance sheet) heights to which collectively they’ve achieved, yet no recovery leaving instead only an inflation “puzzle” that officials haven’t come any closer to solving even after twenty years.
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