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Central Banks Can Print Prosperity

Central Banks Can Print Prosperity

The BriefGet Up To Speed

Central banks all around the world have been printing money. This policy, known as quantitative easing in banker jargon, has driven up the price of stocks and bonds. But will it lead to real and sustainable increases in global growth, or is it sowing the seeds of future inflation?

FOR

Full employment without inflation is in sight. The central bank did its job. What about everyone else?

Sunday, October 4, 2015
Ben S. Bernanke

Gagnon outlines some basics about monetary policy, discusses whether the first rounds of QE worked, and address criticisms of the program and whether a third round of QE will help.

Tuesday, June 14, 2011
Mike Konczal interviews Joseph Gagnon

Fed policymakers and other North Atlantic central bankers who believe that further extension of QE poses substantial risks need to explain exactly what those risks are and why we need to guard against them now.

Friday, September 27, 2013
J. Bradford DeLong

The euro zone is that counterfactual. No thanks.

Monday, August 4, 2014
James Pethokoukis

There are 2 reasons why the case for QE is overwhelming.

Wednesday, January 21, 2015
Paul De Grauwe

It does appear that QE has, in the end, been at least a modest success — particularly in the United States and the United Kingdom, two countries that were early adopters of QE and today are doing better than most.

Sunday, March 1, 2015
Kenneth Rogoff
AGAINST

The costs of accumulating another $1.7 trillion of Treasuries and MBS will be shown to exceed the benefits.

Monday, November 3, 2014
Richard Fisher

Testimony on the risks of quantitative easing as conceived in 2009.

Thursday, February 26, 2009
John Taylor

The equity-market downturn is the inevitable result of the central bank’s policies. The unwinding will likely continue for months

Monday, August 24, 2015
Martin Feldstein

QE is partly to blame for record share buybacks and meager capital spending.

Monday, October 26, 2015
Michael Spence and Kevin Warsh

The Federal Reserve continues to cling to a destabilizing and ineffective strategy.

Wednesday, September 25, 2013
Stephen Roach

Bond buying distorts capital flows and distracts governments from the urgency of structural reforms.

Monday, February 9, 2015
David Malpass

Why has so much attention been given to these monetary policies with no clear explanation of how they might be expected to work and little evidence of effectiveness?

Wednesday, July 10, 2013
John Kay
Background

Introductory videos on quantitative easing.

Wednesday, December 31, 1969

Hirsch explains what this “nuclear option” it is, and what the Fed hopes it’ll do.

Wednesday, December 31, 1969
Paddy Hirsch

To carry out QE central banks create money by buying securities, such as government bonds, from banks, with electronic cash that did not exist before. The new money swells the size of bank reserves in the economy by the quantity of assets purchased—hence "quantitative" easing.

Monday, March 9, 2015
The Economist
QE Comparison

This article describes the circumstances of and motivations for the quantitative easing programs of the Federal Reserve, Bank of England, European Central Bank, and Bank of Japan during the recent financial crisis and recovery.

Friday, February 1, 2013
Four Stories of Quantitative Easing Brett Fawley and Christopher Neely

The European Central Bank is poised to launch a €1tn round of QE on Thursday, years after other world central banks embarked on monetary stimulus

Thursday, January 15, 2015
Katie Allen
Federal Reserve

The U.S. Federal Reserve’s once-in-a-lifetime program to buy immense piles of bonds, month after month, in an extraordinary effort to restart a recession-deadened economy came to an end in October 2014 after adding more than $3.5 trillion to the Fed’s balance sheet – an amount roughly equal to the size of the German economy.

Wednesday, September 16, 2015
Jeff Kearns
European Central Bank

Why the ECB is finally buying bonds.

Thursday, June 18, 2015
Jana Randow

The success of QE in the United States reflected initial conditions that were very different from what we now see in Europe

Wednesday, January 28, 2015
Martin Feldstein

Will policy makers’ purchases of government debt prove enough to revive the region’s economy?

Monday, March 9, 2015
Claire Jones
Bank of England

The Bank announced that its Monetary Policy Committee (MPC) decided the size of the QE programme would stay at £375bn (€521.9bn, $576.6bn) and the interest rate would stay at 0.5%.

Thursday, July 9, 2015
Bauke Schram

An overview of the Bank of England's QE program.

Tuesday, October 28, 2014
Dominic Webb
Tuesday, August 4, 2015
Buttonwood
Bank of Japan

The Bank of Japan has been slurping up huge quantities of Japanese government bonds through quantitative easing. Is the central bank making a profit from these JGB purchases, or is it losing money?

Thursday, July 2, 2015
Yoichi Takita

The launch of aggressive monetary easing by the Bank of Japan stunned financial markets two years ago. But is it still sustainable?

Monday, April 6, 2015
Reiji Yoshida

On October 31st the Bank of Japan (BoJ) stunned the financial markets by unexpectedly expanding its programme of quantitative easing.

Friday, October 31, 2014
The Economist