It’s Now Clear That QE Was a Colossal Policy Mistake

[Peter1469]

QE along with artificially low interest rates set us up for not only unprecedented public and private debt, but the current high inflation (once COVID spending pilled on top).

It’s Now Clear That QE Was a Colossal Policy Mistake

There’s no convincing evidence that central banks’ purchases of trillions of dollars of bonds and other financial assets helped any economy.


The great quantitative easing experiment was a mistake. It's time central banks acknowledge it for the failure it was and retire it from their policy arsenal as soon as they’re able.


Since the global financial crisis of 2008, an integral part of central banks' play book in the US, the UK and the European Union has been QE — the practice of buying up long-term bonds and mortgage-backed securities.

[DGUtley]

And it was predicted.

[LescoBrandon]

Yep. Any time you set floors or caps or artificially interfere with markets, distortions occur. QE caused inflation and malinvestment. As any first year economics student could predict.

[Peter1469]

Yep. Any time you set floors or caps or artificially interfere with markets, distortions occur. QE caused inflation and malinvestment. As any first year economics student could predict.

Unless you are taught Modern Monetary Theory like AOC.

[Tahuyaman]

Unless you are taught Modern Monetary Theory like AOC.

I doubt that she understands that theory. She’s not a very bright woman.

[carolina73]

And now the markets expect US monetary policy to be designed satisfy them. Then they expect us to save them when they royally screw up. Risk is no longer an issue to them.

Crypto is failing and no one in our government is looking at the ones that are destroying hundreds of billions of wealth. As long as they donated to the right political party.

[Peter1469]

I doubt that she understands that theory. She’s not a very bright woman.

She probably understands the basic tenant: government debt spending doesn't effect inflation or harm the economy. That was day one. She probably tuned out after that.

[Peter1469]

And now the markets expect US monetary policy to be designed satisfy them. Then they expect us to save them when they royally screw up. Risk is no longer an issue to them.

Crypto is failing and no one in our government is looking at the ones that are destroying hundreds of billions of wealth. As long as they donated to the right political party.

That was FTX's managers' plan.

[carolina73]

She probably understands the basic tenant: government debt spending doesn't effect inflation or harm the economy. That was day one. She probably tuned out after that.

The first person I remember saying that "debt does not matter" was Dick Cheney. I remember the outrage from the left and their media about that. Now look at them.

[Tahuyaman]

She probably understands the basic tenant: government debt spending doesn't effect inflation or harm the economy. That was day one. She probably tuned out after that.

What she believes is the more government takes power, the better things will be.