That’s not what happened.
If you examine the historical Fed Funds rate you will see that it was rising before Volker took office. Sharply. Inflation didn’t care.
There are only a few issues to address, and they can’t be. All other historical gobbledygook is statistics with sample size < 10.
There is no Modern Monetary Theory. There can’t be any theories at all about a substance created whimsically from nothingness. So that’s issue number 1.
Issue number 2 is address very strictly 2010-2020 and the absence of inflation, in the presence of enormous QE. You can’t. No one can. This is all finance industry BS enshrouding meaninglessness with opaque terminology like yield curve inversion and hell, Quantitative Ease itself.
Sometime have a look at the QE wiki. Then look up “monetizing debt”. You will find the only difference between the two is words. When QE happens for reasons quoted, then it is QE. When monetizing doesn’t use those reasons, then it is monetizing.
It is a substance from nothingness. How could it possibly have meaning? It’s not Maxwellian electromagnetics or Newtonian gravity. It’s babble.
Buy farmland.
“That’s not what happened.”
Everybody’s entitled to an opinion. And that one’s yours.
“There is no Modern Monetary Theory.”
Of course there is, which you’d know if you actually followed monetary debates. Biden’s economic advisors were yapping about MMT all during the election.
“Issue number 2 is address very strictly 2010-2020 and the absence of inflation, in the presence of enormous QE. You can’t. No one can.”
Actually a lot of people can explain it. They just know more than you do about how money and banking and the credit markets are interrelated. Remember the housing bubble that popped in 2008? It’s why we ended up with TARP and QE. And it’s why QE didn’t cause inflation.
The collapse of the bubble made a trillion or so dollars evaporate. Banks had been holding that mortgage paper and their derivatives as assets. Those assets vanished as loans defaulted. QE was counter balanced by a huge deflation occurring in the banking system, so there was a wash.
QE and TARP were tools that Bernanke used to prevent a repeat of 1930-33 when that era’s Fed failed to act. 30% of the US money supply vanished in those three years. A domino effect of credit contraction and disintermediation as thousands of solvent banks failed.
“Sometime have a look at the QE wiki. Then look up “monetizing debt”.
I passed the Series 7, the General Securities exam, back in the 1980s. Now granted that may not equal the fine education that you gained from reading definitions at Wiki, but FINRA seemed to think it was pretty good. IIRC we had to know about Treasury auctions, Fed open market operations, how the bond market operates. Basically the machinery involved in QE. Just without the commericial banking aspect.
Of course if you wanted to learn the theory behind QE you could look up Friedman & Schwartz’s “The Great Contraction”, their history of the banking collapse that cratered the US money supply and caused the Great Depression. Bernanke was a student of Friedman & Schwartz and he implemented their ideas.