Miss Yellow River
Dear Sir/Madam,

Why USA's Quantitative easing policy does not cause high or very high inflation rate which happened in others countries?

Cordially Regards,

Miss Yellow River.

Good question, Madam!

I [personal opinion] believe it is because the banks are sitting on this money as reserves to protect their solvency. In other words, the money is not in circulation. If the banks start loaning money, instead of accumulating reserves, in large amounts, the inflation fear will be more pronounced, and we may see some, or a lot of, inflation.

Come join discussion at www.econpoint.com about economics.

Have a good day,
Rob