Even more on inflation

Via The New Republic, Goldman economists make argument against view that Federal Reserve actions will lead to inflation:

Part of the argument is that, as Paul Krugman has pointed out, an increase in the money supply isn't inflationary when banks aren't lending out the extra money. Goldman says that, even before the Fed expanded the money supply (i.e., create extra reserves that the banks could use to increase lending), the banks weren't lending as much as they theoretically could. But if their capacity to lend wasn't a binding constraint, you wouldn't expect them to increase lending just because that capacity increased. And they haven't.