korrents

quantitative easing

FilterEveryone, all time6 from 3 people
Group All Economists & investors 2Writers & journalists 1
Who Everyone OBOlivier Blanchard 3 SSScott Sumner 2 LALyn Alden 1
When All time Past 1 yearPast 3 yearsPast 5 years
  1. LA

    Lyn Alden quoted

    Investment researcher and engineer who runs Lyn Alden Investment Strategy

    Our readingSince the Global Financial Crisis, unconventional monetary policy has become the dominant force driving asset prices, more than fundamentals.

    Their wordsSince then, these unconventional monetary policies have increasingly become the dominant force moving asset prices.

    ↗Bitcoin: A Global Liquidity Barometerlynalden.com 2nd of 3 in this piece

  2. 2 years earlier
  3. OB

    Olivier Blanchard quoted

    Economist; former chief economist of the International Monetary Fund

    Our readingA central bank can eliminate a self-fulfilling ('sunspot') debt crisis simply by credibly committing to buy as many bonds as needed at the low interest rate.

    interest ratesinvesting

    Their wordsThis is precisely the role the central bank can play. By announcing that it stands ready to buy the bonds that investors want to sell at the price associated with the low interest rate, and credibly indicating that it has deep enough pockets to buy whatever is needed, it can eliminate the bad equilibrium.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  5. OB

    Olivier Blanchard quoted

    Our readingCentral bank purchases of government bonds are not bailouts and do not automatically cause inflation, since they only change the composition of the consolidated government's liabilities, not their total.

    inflationinterest ratesgovernment

    Their wordsGovernments have not been bailed out by their central banks. As I discussed earlier, central bank intervention does not reduce the overall liabilities of the consolidated government, just their composition. And it does not automatically lead to more inflation: It increases the size of the balance sheet of the central bank, but it does not increase the size of the non-interest-paying money stock.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  7. OB

    Olivier Blanchard quoted

    Our readingCanceling government bonds held by a central bank creates no fiscal space, because the reduction in government interest payments is exactly offset by an equal reduction in the profits the central bank remits to the government.

    interest ratesgovernment

    Their wordsThe proposition is that the cancellation of the bonds held by the central bank would decrease the amount of interest payments and thus the debt service of governments. And indeed, it would. But it would have another effect—namely, to decrease the revenues of the central bank and thus the profits that the central bank turns in to the government. This second effect would be exactly of the same size as the first, and the net effect on the government budget constraint would be equal to zero.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  8. 12 years earlier
  9. SS

    Scott Sumner quoted

    Monetary economist known for NGDP-level targeting

    Our reading · no longer heldAggressive quantitative easing should raise long-term interest rates, because effective monetary stimulus raises them.

    interest rates

    No longer holdsI predicted that aggressive QE would raise long term interest rates, a view which seemed to be refuted by the response on T-bond yields to the March 2009 Fed QE announcement.

    SaidI predicted that aggressive QE would raise long term interest rates, a view which seemed to be refuted by the response on T-bond yields to the March 2009 Fed QE announcement.

    ↗A few of my mistakesthemoneyillusion.com

  10. 1 day earlier
  11. SS

    Scott Sumner quoted

    Our readingAggressive quantitative easing should raise long-term interest rates, because effective monetary stimulus raises them.

    interest rates

    Their wordsAny effective monetary stimulus would be expected to raise long term rates.

    ↗A few of my mistakesthemoneyillusion.com