The Effects of QE on the Economy

Werner: In 2008 the fed reserve adopted qe2 at a time when the economy was actually doing fine Growth was was fine bank credit growth was around 5 6 percent There was no deflation. This was a recommendation for deflation and for shrinking economy and they did it They did qe2 and there was a massive expansion the fed reserve buying up private sector assets from non-bangs therefore forcing banks to create credit. Massive, I mean, it's just totally off the charts the biggest in the post-war era And at the same time, of course, there were government restrictions in 2020 So therefore if you reduce supply, but you massively increased the bond through money creation putting into the