Quantitative easing (QE) exposes the fallaciesDuring a period 2008 to 2022 some 12 years of quantitative easing (QE) combined massive influxes of money into the economy expanding M associated with close-to-zero Bank of England (BoE) base interest rates. Initially there was very little impact on the prices of goods and services contrary to QTM logic. However, with each advance of QE tranches asset prices rose almost in direct proportion to the percentage rise in money volumes. These major price rises involved assets, including:
| Land - l; Domestic and commercial and real estate - r; Precious metals - p; Commodities - m; |
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| Art objects - a; Shares - h; Financial instruments - f; Crypto-currencies - c; |
Other flows of funds not involving goods and services and not being assets included Savings - s and Offshore investment - o.
The prices of goods and services remained under the control of companies who set their prices according to unit costs and not money volumes in the economy. The QTM could not predict these price events because the QTM contains no variables representing asset transactions.
