Waiting for inflation?

With 2% inflation both for headline and core, there is the recurring question of where is the inflation that was expected with QE. The inflation pick-up has not happened. The world has changed with respect to the link between money and inflation. With slack in the economy, there is little increase in real asset prices. This story is not new, but the size of the money increase as not lead to nominal price gains. We have seen increases in financial assets. We also have seen increases in housing prices, but wages and goods are very stable. We continue to be within the target range for inflation.