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analyst Profile| Send Message| (1,009)    In a recent article
"Inflation Lags Monetary Expansion: Prepare To Be Swindled," the
implication is made that there is a tight correlation and causal
relationship between printing money and inflation. Modern
history and monetary policy theory seem to contradict that
theory. While there are times when that relationship may hold,
there are others when just the opposite occurs. One only needs
to look at Japan for a case study to demonstrate that fact.
Japan has been battling deflation for over a decade with a
highly expansionary monetary policy.  In a statement released on
Wednesday in Tokyo, the Bank of Japan said it wanted to
"drastically change the expectations of markets and economic
entities", and "lead Japan's economy to overcome deflation that
has lasted for nearly 15 years".  The US Federal Reserve - an
enthusiastic supporter of so-called "unconventional" monetary
policies such as QE - is spending $85bn