Hi there, I recently got into a conversation about the primary causes of inflation post-COVID in the US. Somebody explained how it was mainly bond-buying, ease of loan access, and the subsequent cash transfers from the government. This was opposed to supply chain constraints and the Russo-Ukraine war causing energy price hikes.

Specifically the fed backed government and commercial debt (by QE and lowering the interest rate) which facilitated the government spending that came after. I’m not sure this is quite right but I wanted some clarity on it.

And as an extra question, did the ease of loan access during that time end up creating an asset bubble?