velocity of money

Quantity theory of money redux? Will inflation be the legacy of quantitative easing?

Since the onset of the Federal Reserve’s unconventional programme of large-scale asset purchases, known as quantitative easing (QE), some economists and financial practitioners have feared that the consequent buildup of the Fed’s balance sheet could lead to a large expansion of the money supply, and that such an increase could cause a sharp rise in inflation. So far fears about induced inflation have not been validated.