A Different Story Of Inflation With John Cochrane
Capitalisn't
00:00
Is QE a Nothing Burger?
If quantitative easing is a nothing burger, why did the Fed start doing it in the financial crisis? Why did the Fed continue to do it throughout the previous decade in such huge quantities? And I just add to that this notion that market participants don't think QE is anothing burger. They view it as a sign that the Fed is trying to keep interest rates low. Therefore, it's a bullish signal. It leads to an increase in asset prices, which, in and of itself, then has an impact on the real economy.
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