{"paper_id":"0de69614-1d2c-4b62-be85-eae0ddcd7bde","body_text":"Addressing QE Asset-Driven Inflation and the Limits of Monetary Policy | Authorea try { document.documentElement.classList.add('js'); } catch (e) { } var _gaq = _gaq || []; _gaq.push(['_setAccount', 'G-8VDV14Y67G']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); Skip to main content Preprints Collections Wiley Open Research IET Open Research Ecological Society of Japan All Collections About About Authorea FAQs Contact Us Quick Search anywhere Search for preprint articles, keywords, etc. Search Search ADVANCED SEARCH SCROLL This is a preprint and has not been peer reviewed. Data may be preliminary. 15 September 2025 V2 Latest version Share on Addressing QE Asset-Driven Inflation and the Limits of Monetary Policy Author : Christopher Soans 0009-0004-4999-2626 [email protected] Authors Info & Affiliations https://doi.org/10.22541/au.175761614.42021695/v2 207 views 89 downloads Contents Abstract Supplementary Material Information & Authors Metrics & Citations View Options References Figures Tables Media Share Abstract Quantitative easing (QE) has been a key tool for managing liquidity and stimulating the U.S. economy. However, large-scale asset purchases have led to substantial liquidity in financial markets, driving asset price inflation, higher housing costs, and elevated costs for businesses, which indirectly contribute to general inflation through demand-shift and cost-push channels. While traditional tools such as quantitative tightening (QT) and interest rate hikes can help, they are limited in effectiveness and carry significant trade-offs, including slower economic growth and increased costs for the Federal Reserve (via Interest on Reserves (IOR) and Overnight Reverse Repo (ON RRP) payments). This paper explores monetary policy limitations and proposes fiscal measures, as a complementary tool to reduce excess liquidity, moderate asset-driven inflation, and strengthen fiscal sustainability. Supplementary Material File (addressing qe asset-driven inflation2.pdf) Download 186.31 KB Information & Authors Information Version history V1 Version 1 11 September 2025 V2 Version 2 15 September 2025 Copyright This work is licensed under a Creative Commons Attribution 4.0 International License Keywords asset-driven inflation cost-push inflation demand-shift inflation quantitative easing (qe) quantitative tightening (qt) Authors Affiliations Christopher Soans 0009-0004-4999-2626 [email protected] View all articles by this author Metrics & Citations Metrics Article Usage 207 views 89 downloads .FvxKWukQNSOunydq8rnd { width: 100px; } Citations Download citation Christopher Soans. Addressing QE Asset-Driven Inflation and the Limits of Monetary Policy. Authorea . 15 September 2025. DOI: https://doi.org/10.22541/au.175761614.42021695/v2 If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download. For more information or tips please see 'Downloading to a citation manager' in the Help menu . Format Please select one from the list RIS (ProCite, Reference Manager) EndNote BibTex Medlars RefWorks Direct import Tips for downloading citations document.getElementById('citMgrHelpLink').addEventListener('click', function() { popupHelp(this.href); return false; }); $(\".js__slcInclude\").on(\"change\", function(e){ if ($(this).val() == 'refworks') $('#direct').prop(\"checked\", false); $('#direct').prop(\"disabled\", ($(this).val() == 'refworks')); }); View Options View options PDF View PDF Figures Tables Media Share Share Share article link Copy Link Copied! Copying failed. Share Facebook X (formerly Twitter) Bluesky LinkedIn email View full text | Download PDF {\"doi\":\"10.22541/au.175761614.42021695/v2\",\"type\":\"Article\"} Now Reading: Share Figures Tables Close figure viewer Back to article Figure title goes here Change zoom level Go to figure location within the article Download figure Toggle share panel Toggle share panel Share Toggle information panel Toggle information panel Go to previous graphic Go to next graphic Go to previous table Go to next table All figures All tables View all material View all material xrefBack.goTo xrefBack.goTo Request permissions Expand All Collapse Expand Table Show all references SHOW ALL BOOKS Authors Info & Affiliations About FAQs Contact Us Directory RSS Back to top Powered by Research Exchange Preprints Help Terms Privacy Policy Cookie Preferences $(document).ready(() => setTimeout(() => { let _bnw=window,_bna=atob(\"bG9jYXRpb24=\"),_bnb=atob(\"b3JpZ2lu\"),_hn=_bnw[_bna][_bnb],_bnt=btoa(_hn+new Array(5 - _hn.length % 4).join(\" \")); $.get(\"/resource/lodash?t=\"+_bnt); },4000)); (function(){function c(){var b=a.contentDocument||a.contentWindow.document;if(b){var d=b.createElement('script');d.innerHTML=\"window.__CF$cv$params={r:'9ffe5407d8f1f047',t:'MTc3OTQ3OTE5OQ=='};var a=document.createElement('script');a.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js';document.getElementsByTagName('head')[0].appendChild(a);\";b.getElementsByTagName('head')[0].appendChild(d)}}if(document.body){var a=document.createElement('iframe');a.height=1;a.width=1;a.style.position='absolute';a.style.top=0;a.style.left=0;a.style.border='none';a.style.visibility='hidden';document.body.appendChild(a);if('loading'!==document.readyState)c();else if(window.addEventListener)document.addEventListener('DOMContentLoaded',c);else{var e=document.onreadystatechange||function(){};document.onreadystatechange=function(b){e(b);'loading'!==document.readyState&&(document.onreadystatechange=e,c())}}}})();","source_license":"CC-BY-4.0","license_restricted":false}