frayne
Thinks s/he gets paid by the post
Good or bad, or just the usual smoke and mirrors brought to us by the friendly folks at the Fed ?
What say you ?
What say you ?
Good or bad, or just the usual smoke and mirrors brought to us by the friendly folks at the Fed ?
What say you ?
Good or bad, or just the usual smoke and mirrors brought to us by the friendly folks at the Fed ?
What say you ?
The other effect it has is to piss off our trading partners. We have had all this rhetoric about not manipulating currencies and then we do it ourselves. Watch out below.
BBC News - China, Germany and South Africa criticise US stimulus
The other effect it has is to piss off our trading partners. We have had all this rhetoric about not manipulating currencies and then we do it ourselves. Watch out below.
BBC News - China, Germany and South Africa criticise US stimulus
QE is unconventional monetary policy, but it is monetary policy nonetheless. When either conventional or unconventional monetary policy eases, certain things are supposed to happen: long-term yields fall, stocks rise, the exchange rate declines. All of which is happening now. If the Fed had just cut the Federal funds rate from 3.5% to 2.75% (roughly the equivalent of what its $600 billion in Treasury purchases should achieve), we should have expected exactly the same results, without the sturm und drang about currency wars.