Bill English on the Effectiveness of QE and the Consequences of Fed Losses
Macro Musings with David Beckworth
00:00
What if the Federal Reserve Books Losses Because of QE?
The ECB has had a tough run with it because 2011, two times they raised interest rates into what I would argue is more of a supply side inflationary. So these central banks in Europe and other places, they're earning up their reputational credit so to speak. And that just seems like a tough task ahead for them. But as Ben Bernanke once said, it works in practice, but not in theory, and it creates this tension. The key is going forward, what's going to happen to the Eurozone economy? No one really knows for sure. Will they thread that needle? Will they navigate that storm just perfectly?
Transcript
Play full episode
