Post Profile

Fiscal crisis quantitative easing works in theory, too

Conventional economic theory predicts that, outside of a financial crisis, quantitative easing should have no effect on real outcomes or inflation. This column proposes two theoretical channels through which quantitative easing might also work in a fiscal crisis. In this case, quantitative easing can be a valuable tool because it can control the path of inflation over time and reduce the distortions to the credit flow in the economy.
read more


Related Posts

What Inflation Really Means To Your Household

Business & Finance : Business Insider: Money Game

The Fed justified the previous round of quantitative easing "to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate" (full text). In effect, the Fed has...

The Only Thing More Skewed Than Income Inequality In America Is Wealth Inequality

Business & Finance : Business Insider: Clusterstock

In an effort to bolster the country's economic health amid the financial crisis, the Federal Reserve embarked on an ambitious monetary policy known as quantitative easing, the effects of which remain somewhat unknown. But years into...

Draghi's Dilemma: Expansion of Quantitative Easing in the EU

Business & Finance : Global Edge

Since the financial crisis, the economic situation in the European Union has been stagnant. Years of low growth and low inflation have left the Eurozone seeking answers. In January 2015, the ECB sought to find these answers through ...

If Quantitative Easing Works, Why Has It Failed to Kick-Start Inflation?

Business & Finance : Zero Hedge

QE Has Failed to Spark Inflation Quantitative easing (QE) was supposed to stimulate the economy and pull us out of deflation. But the third round of quantitative easing (“QE3?) in the U.S. failed to raise inflation expectations. And...

Gold shines amid gloom of "worst economic crisis ever"

Business & Finance : Money

Fears that quantitative easing will boost inflation and devalue paper money helped propel the gold price $23 higher to close at $1,646 (£1,068) per ounce. Bank of England Governor Mervyn King’s prediction that this financial crisis ...


Copyright © 2016 Regator, LLC