The ultimate limits on an economy are on the supply-side: eventually, the labour market will tighten and inflationary pressures will emerge.
Nor is it just the threat of higher short-term rates and inflationary pressures in America that is driving long-term bond yields higher.
Every time economic growth was heading past 3%, he slammed on the monetary brakes: as he saw it, the country's resources were at full stretch and inflationary pressures were building dangerously.
But should circumstances change and inflationary pressures start to build on the back of an accelerating economic recovery, the Fed has said it would be prepared to reverse the downward trend in interest rates without much delay.
Lower rates of unemployment associated with a boost in manufacturing could stimulate the economy and trigger inflationary pressures, the eventual (and inevitable) consequences of increasing the money supply.
FORBES: For Manufacturing Sector, Europe's Loss Is America's Gain
Critics argued that most of that money would simply find its way into commodity markets, inflate prices and add inflationary pressures.
And limiting foreign exchange re-investments to low-yield government bonds has acted as a direct subsidy of American taxpayers and the American government, saddling China with extraordinarily low yields and creating inflationary pressures.
The temptation to increase money supply and fuel inflationary pressures in this environment may be too difficult to resist for a civilian administration eager to avoid making political enemies early in its remit.
Fortunately, in both Europe and America, inflationary pressures are extremely low and public finances are healthy.
Better-than-forecasted earnings and rising stock prices are keeping many optimistic, while inflationary pressures and the uneven pace of the economic recovery remain a concern.
FORBES: Do Investors Think The Stock Market Is Fairly Valued?
Some question the morality of authority given to a central bank which allows violent intervention in the marketplace to smooth out inflationary and deflationary pressures.
FORBES: Let's Give It Up For The Fed For A Job Well Done On Maiden Lane
The biggest problem with the American health care system is that it costs too much, and the way inflationary pressures are actually built into it.
The Fed is currently focused on stoking economic growth, but Bernanke may be betting that the current commodities boom will end, or at least taper off, stabilizing oil prices and easing consumer inflationary pressures.
Imports become cheaper and thus reduce inflationary pressures.
For Prof Miles, the only real difference between QE and even more "unconventional" money financing is that, with QE, the terms on which the money is created "are flexible and sensitive to inflationary pressures" - whereas in the case of a helicopter drop, the terms are more open.
Many investors believe that the actions of the Federal Reserve have introduced tremendous inflationary pressures into the system and have added gold to their portfolios in advance of the realization of those inflationary pressures.
There are lots of indications that the recovery is gathering steam, and if growth improves inflationary pressures are sure to mount.
FORBES: Understanding The Fed Via Spinal Tap: Gimme Some Money
The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures.
But if sterling's strength is only temporary, as the Bank believes, then as it weakens inflationary pressures and interest rates can be expected to rise.
He said European operators would benefit from generally high prices, compared with those in the United States, and that only 30.0% of costs was exposed to inflationary pressures like energy and labor.
Additionally, tightening policies in China and India will keep a lid on inflationary pressures in the US as those countries seek to spur internal consumption and demand.
When policymakers cut interest rates in the 1960s and 1970s they often ignited inflationary pressures.
It may also signal further cuts ahead, particularly in Europe, as inflationary pressures subside and the need to spur growth takes priority.
Two things are all but certain when the Fed cuts interest rates: Inflationary pressures increase and investors flee dollar-denominated assets.
With China's recovery well advanced, the central bank is keen to get a grip on bank lending and keep a lid on inflationary pressures.
ECONOMIST: The Chinese case for a stronger, more flexible currency
On Wednesday the Institute for Supply Management reported U.S. factory activity contracted for a second month in September, while inflationary pressures tumbled and employment in the sector fell.
Bad things happen when a lower dollar fosters inflationary pressures, and as quantitative guessing is unlikely to generate economic growth, rising inflation and rising interest rates are likely to become a rally killer sometime next year.
Africans lack bureaucratic pressures hindering use of renminbi for imports and are motivated to do so because of inflationary pressures produced by their own weak national currencies.
FORBES: China's Yuan Internationalization: Made In Africa, Not Hong Kong
应用推荐