We often hear in the post-Lehman era that governments are printing money, and this must bring rampant inflation. Yet in reality, the evidence points in the opposite direction. A slew of recent data releases confirm a trend of disinflation, not inflation: Australia, Canada, Germany, Sweden, the Netherlands and the United Kingdom have all reported that key inflation measures are falling. Add to this list the United States, where the latest monthly rate of consumer price inflation was negative.
What is happening here? If the big central banks are printing money as fast as they can, where is the inflation? When will we see it?