When people say 'inflation,' they usually mean one thing. But there are actually several distinct types, and confusing them leads to bad analysis.

High Street Inflation (Consumer Price Inflation):

What most people mean — rising prices at the grocery store, gas pump, and mall. This is measured by CPI and PCE. It's what hurts consumers and what the Fed officially targets.

Asset Inflation:

Rising prices of financial assets: stocks, bonds, real estate, art, crypto. This is where most QE money goes — it stays in financial markets, inflating asset prices without (immediately) flowing to consumer prices.

Characteristics:

• Makes asset owners richer (wealth effect)
• Not measured in CPI
• Can create 'bubbles'
• Benefits the wealthy disproportionately

Monetary Inflation (Howell's 'Debasement'):

Deliberate depreciation of money through excess supply. When central banks create money faster than economic output grows, each unit of money becomes worth less.

The Key Insight:

2010-2020 QE didn't cause consumer inflation because the money stayed in financial assets. Banks got reserves, but they didn't lend aggressively. 2020-2022 was different: stimulus checks went directly to consumers, AND supply chains broke. Consumer inflation finally arrived.