They think that because that's what happened. The Fed pushed out $4T of QE and inflation barely budged for over a decade (after 2008/2009 recession). It took a global pandemic + a land war in Europe to bring on substantial inflation.
I remember when the Fed started doin QE in 2009. I thought, "my god, pushing this much money into the economy will lead to high inflation!"... except, it didn't. Then they did QE2 and again, I thought, "for sure, THIS time inflation will spike up!" Except it didn't. Then QE3 in 2012...
Call me slow, but it wasn't until that point that I started to seriously re-examine my mental model about how macroeconomics works. But at least I could admit to being wrong.
The US economy grew from $14T in 2009 to $21T up to 2019. Printing money during an economic boom is not like printing money in a static or shrinking economy.
I remember when the Fed started doin QE in 2009. I thought, "my god, pushing this much money into the economy will lead to high inflation!"... except, it didn't. Then they did QE2 and again, I thought, "for sure, THIS time inflation will spike up!" Except it didn't. Then QE3 in 2012...
Call me slow, but it wasn't until that point that I started to seriously re-examine my mental model about how macroeconomics works. But at least I could admit to being wrong.