Loading ...Hunt on QE and more
Hunt … ALWAYS thought provoking … among the very best out there imo
“My point is a simple one. In exactly the same way that QE was deflationary in practice when it was inflationary in theory, so will the end of QE be inflationary in practice when it is deflationary in theory.”
New on ET: how the Fed crowds out risk-taking and what that means for inflation and productivity.
Very Interesting take pedro thanks
one more inflationary item
http://tsi-blog.com/2017/07/inflation-as-far-as-the-eye-can-see/
Used to get SS, years ago.
One of the first I read with a solid angle on the monetary side of the equation.
“Thanks to what happened during 2008-2014 we can now be certain that the Fed has the ability to counteract the effects on money supply, asset prices and the so-called “general price level” of widespread private-sector de-leveraging. The only question left open to debate is: will the Fed CHOOSE to do whatever it takes to keep the inflation going in the future?”
One: next time, private sector deleveraging may overwhelm their ability to respond in time and with adequate scale. Hard to know here and now.
Two: the political backlash against the consequences of QE Everywhere has taken awhile, and many among the general public still don’t recognize the SOURCE of the problem, but they are now even more in the crosshairs than in 2007. They have failed, even if they don’t accept that. It only takes a few prominent voices talking sense for more folks to see the light.