Yes, but a lot of things have to go right

摘要

History does not paint a very optimistic picture for the outcome of long periods of easy money and massive fiscal debt. Previous experience suggests we will see a build-up in inflation over the next several years, perhaps exacerbated by international food shortages and energy production disruptions due to political upheaval. The key to any central bank's ability to expand its balance sheet to ease monetary policy is continued confidence in that country's currency. So far, the United States has been able to handle deeper fiscal debt, some of the paper held by the Fed, because the United States is still seen as a safe haven with credible currency.