take a look at this graph of the volocity of money.
http://research.stlouisfed.org/fred2/series/M2V
this is the graph that the fed is looking at for guidance on QE’s. as long as the velocity of money is falling—then the feds will continue their QE’s.
(velocity just refers to the amount of lending the banks are doing. this just means that the banks aren’t doing a lot of lending and corporations aren’t spending a lot of the capital reserves. only about 10% of the fed’s QE’s are actually getting into the system—and that’s mostly just to pump up the stock market and increase federal revenues byo taxes on stock market capital gains.)
Contrary to Keynesian theory, the economy is not a machine that can be primed by increasing the flow of fuel, which is money. An economy consists of billions of people, making trillions of decisions, based on their perceptions and their values. It’s way too complicated to be controlled by bureaucrats.