In the advent of such massive Quantitative Easing (QE)[1] conducted by the Federal Reserve (FED), there has been debate as to whether hyperinflation or deflation would occur. The debate: Hyperinflation vs Deflation Firstly, we should explore what hyperinflation is. Hyperinflation, as its name suggests, is the rapid increase of the prices of goods and services of more than 50% per month. This could occur because businesses will increase their prices to stay afloat while the consumers will have more from the QE and thus will be willing to pay more. However, as the economy continues to decline, the FED will respond by printing more money. Businesses will then increase their prices again; causing a never-ending cycle that will lead to hyperinflation. Deflation, on the other hand, occurs when the prices of goods and services decrease. This could happen as businesses will lower their prices to drive demand. However, if people become cautious spenders and choose to save instead, all the money printed from the QE will remain in the banks while prices continue to lower in a bid to increase demand....