quantitative easing Archives - Page 2 of 5

What happens if the economy hits some rocks? Will the Fed stop the taper?

By Larry Kummer, Editor / 1 Comment / 9 February 2014 17 November 2014

Summary: The first phase of the great monetary experiment was guaranteed pleasure. Whatever the results, monetary stimulus feels great. Then comes the difficult process of withdrawing the stimulus. “Tapering”, as its called by economists (and, coincidentally, by heroin addicts). How much damage will be cause? How much pain? Today we have advice about what to …

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The easy way to understand unconventional monetary policy

By Larry Kummer, Editor / Leave a Comment / 7 February 2014 9 February 2015

Summary: It’s difficult to describe the magnitude of the monetary policy experiments now running around the world, most especially in China, USA, and Japan. At the end are links to a dozen posts attempting to do so with words and numbers. Today we do it with pictures. . The monetary stimulus programs running around the …

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Wagering America on an untested monetary theory

By Larry Kummer, Editor / 10 Comments / 22 January 2014 17 November 2014

Summary: After years of quantitative easing, with the Fed starting to slow the third great wave, officials are breaking their facade of confidence to admit what many of us have long said. They do not know how QE works, or the effects of ending it. QE is an experiment, one of the greatest economic experiments …

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Do we get deflation or inflation? Today we look at the darker scenario.

By Larry Kummer, Editor / 33 Comments / 3 December 2013 17 November 2014

Summary: One example of our inability to see the world through our ideological blinders is the obsession with inflation (coming real soon, so we’ve been told for 3 years) while deflation bangs on the door. We must learn to see better. Fortunately the people running the economy see more clearly (despite the mockery and insults …

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Larry Summers gives us the bad news. Worse, the only solution is more of the same.

By Larry Kummer, Editor / 31 Comments / 20 November 2013 9 May 2016

Summary: Larry Summers speech last week was, IMO, a pivotal moment. It forced economists to look at the US from a new perspective, considering things that had been heretical. The previous post, Are we following Japan into an era of slow growth, even stagnation? sketched out his bold speech. Today we look at the text, with …

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