The Cantillon effect: "the first ones to receive the newly created money see their incomes rise, whereas the last ones to receive the newly created money see their purchasing power decline as consumer price inflation comes about." https://mises.org/library/how-central-banking-increased-inequality … https://en.wikipedia.org/wiki/Richard_Cantillon …
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Right, but if Cantillon Effect was playing a big role, Sumner would argue: "then why did rates RISE on news of new QE?" (as they did with QE1-3) Those rise in rates (drop in bond price) would HURT the rich bankers who were trading with the Fed, no? https://www.themoneyillusion.com/interest-rates-and-the-facevase-problem/ …pic.twitter.com/iIhkYNHgmV
