[bratticus]

Back in 1999-2000 the US Federal government also did a cash injection and then stopped. Some reports about the long-term effects.

Will money supply increase cause inflation?
By Jon E. Dougherty / WorldDailyNet / Dec 15, 1999

The Federal Reserve's record increase in the U.S. money supply -- the largest such monetary expansion in its history -- in anticipation of Y2K-related financial problems may well lead to inflation, depending on how bad Y2K turns out to be, according to economic experts. ... "I just don't have another excuse other than Y2K to imagine why the Fed would flood the system, unless there is something that's happening behind the scenes that we don't know about," Hays said. ... "This huge liquidity is the reason for the big rally in stocks since October," said Hays. "It's a replay of the market's run-up exactly one year ago, when the Fed rushed to flood the system after the panic from the Russian loan default and the Long Term Capital Management hedge fund disaster." ... "People are not borrowing just to stuff the money in their mattresses," he said. "They borrow to spend and it ain't a coincidence that the stock market has picked up as the money supply has exploded."

What Can Y2K Tell Us About QE2?
By RANDALL W. FORSYTH / Barrons / Apr 1, 2011

As I wrote all the way back on Dec. 11, 2000 ("Fed Inflated, Then Burst IPO Bubble"), the Nasdaq's rise closely paralleled the rise in the Fed's liquidity expansion, which was undertaken as a preventative for the much-feared impact of the Y2K effect, which was supposed to cripple computer systems unprepared for the changeover from 1999 to the year 2000. The well-anticipated Y2K wound up having negligible effect, but the liquidity the Fed provided had the real impact of pushing up the Nasdaq to peaks that still are nearly twice that of current levels, even after the rousing recovery of the past two years. And when that liquidity was withdrawn, the Nasdaq crashed. Thus, it appears that if QE2 follows the path of Y2K, the outcome would be less than A-OK.

until July 1, 2011, the first day with no more QE2. Of course there will be some inertia for a while.