Amid all the talk of when and how to end or reverse quantitative easing (QE), one question is almost never discussed: Why have central banks’ massive doses of bond purchases in Europe and the United States since 2009 had so little effect on the general price level?

The stock market upturn has been impressive, but there is no lack of threats to corporate profits. In the meantime, stimulus programmes are being withdrawn. Which is more important – the pace or the direction?