&quot;We&quot;?  I do not share your opinion that the price inflation resulting from monetary policy is in any way a good thing.<p>You can&#x27;t stimulate demand with a subsidy.  You can&#x27;t depress demand with a tax.  Both of those things are manipulations to the natural equilibrium price, and generate guaranteed deadweight losses.<p>The only way to &quot;stimulate demand&quot; is by changing what people&#x27;s desires and priorities, such as by advertising.  People have to want now-things more than potential future-things.  Tricking them by pretending that they can have both more now and more later and then revealing only after they buy that they will actually have less later degrades trust, which causes more saving and stockpiling, which reduces the velocity of commerce.  That reduces the economic leverage of controlling the size of the money supply.<p>You can&#x27;t fool all the people all the time, and the ones you can&#x27;t fool leak their information through the market.  Most people know by now that the market can stay irrational longer than you can remain solvent.  But we also know that you don&#x27;t need to outrun the tiger, you just need to outrun your friend.  So consumers are paying down debt, and companies are hoarding cash, hoping to be the best-prepared survivors when the whole house of cards falls.  Fed policy is not taking into account the fact that it can&#x27;t just print more confidence.