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Sober Look points out that, technically, there’s been no QE.
Yes, the Fed has bought up a bunch of stuff and swelled its balance sheet – i.e. engaged in the policies that QE supporters pushed for the sake of ‘QE’ – but that apparently hasn’t much affected bank reserves or the money supply or therefore the velocity of money. Since pushing those things upward is routinely pitched as the ‘benefit’ of the QE-intended purchases in question, this would seem to immediately raise the question, have any of these non-QE “QEs” been worth it? Even by the standards of their defenders they should be considered a failure right?
Furthermore, since they’re a failure, and in practice have not done the supposedly-beneficial thing their supporters anticipated and hoped for, shouldn’t the Reality-Based neo-Keynesians change their position? Something about ‘when the facts change what do you do sir’?
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