?”Over the past four years, the Federal Reserve has more than tripled the monetary base, a key determinant of money supply. Some commentators have sounded an alarm that this massive expansion of the monetary base will inexorably lead to high inflation, à la Friedman.
Despite these dire predictions, inflation in the United States has been the dog that didn’t bark. [In fact], it has averaged less than 2 percent over the past four years. What’s more, as the figure also shows, surveys of inflation expectations indicate that low inflation is anticipated for at least the next ten years.”
the Federal Reserve branch of San Francisco president John Williams, 2 July 2012.