Henry Curr on the Myths and Uncomfortable Truths about QE
Macro Musings with David Beckworth
00:00
Is Cue Distorting Financial Markets?
The housing market at the moment is really, really strong. Some people seem to argue that cue crops up financial markets, but doesn't help the real economy. The signalling theory of cues says that ce works because it reveals to financial markets how central banks are going to move short time interest rates in future. But i think the best evidence is what happened during the take chantrum in two thousand 13 when hawkish comments by ben benanke about the future of the feds assit purchasers caused a big deloff in bond market. So henery, is there any evidence for the signalling channel? Yes.
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