It really doesn’t matter how one feels about QE. The results are staggering:

  • QE3 began in September 2012
  • The core PCE yoy for September 2012: 1.7%
  • The unemployment rate in September 2012 (34 months from peak of 10%): 8.1 (average monthly drop .06%)
  • Unemployment rate in June 2014 (21 months from start of QE): 6.1% (average monthly drop to present .10%)
  • Core PCE yoy for June 2014 (latest month available): 1.58%

The tradeoff between unemployment and inflation that was seemingly apparent to nearly everybody but market monetarists doesn’t exist, at least under the circumstances of an output gap that is large enough to drive a mile-wide convoy of trucks through it doesn’t. The proof is in the pudding.

So I wonder. Where is the mea culpa?