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The Importance of Quantitative Easing
Alfonso: QE forcefully swaps the composition of the asset side of the private sector. Pension funds, for instance, are highly regulated entities. They have an asta-location model, which is very much scrutinized by the regulators. It has a relatively large impact on society and on the sustainability of this entitlement to be paid off when it comes to pension contributions in the end. So there is a portfolio rebalancing channel that's difficult to measure but very convex.