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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?

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For:

Roger Bootle

3 Items
Roger Bootle
  • Executive Chairman, Capital Economics
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This week the Monetary Policy Committee (MPC) will decide whether or not to extend its programme of quantitative easing (QE), ie buying assets with central bank money.

Sunday, November 1, 2009

It's one of the oldest tricks in the book - rulers have always sought to reduce the coinage’s precious metal value.

Sunday, September 13, 2015

Only when umpteen million of Europe’s unemployed and dispossessed find jobs and hope will the issue be over.

Sunday, January 25, 2015
For:

Simon Johnson

11 Items
Simon Johnson
  • Fmr. Chief Economist, International Monetary Fund
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Can tax cuts pay for themselves, inducing so much additional economic growth that government revenue actually increases, rather than decreases? The evidence clearly says no.

Thursday, October 13, 2011
Source
Tuesday, December 16, 2008
Source

In our view, the Fed’s current “print the money” strategy (and, yes, I know the Fed doesn’t like this term or even “quantitative easing”) is make-or-break for turning the economic corner any time soon. It’s incredibly risky in terms of potential inflation – more than the Fed would ever concede – but preferable to all the available alternatives.

Saturday, April 4, 2009

Johnson and Calomiris debate whether to break up big banks—probably the biggest open question remaining since the financial crisis.

Wednesday, May 1, 2013

At a stroke, the proposed law would force global megabanks such as JPMorgan Chase and Bank of America to become smaller and much simpler -- divorcing high risk activities from plain-vanilla traditional banking.

Thursday, July 11, 2013

The dangers of reckless behavior by global megabanks are now understood much more broadly. And Brown-Vitter provides an appropriate road map for addressing some of the core problems and making the financial system significantly safer.

Sunday, April 28, 2013

Johnson discusses financial reform, Too Big to Fail, and America’s huge national debt.

Wednesday, January 23, 2013
Source

The true conservative agenda should be to take government out of banking by making all financial institutions small enough and simple enough to fail.

Sunday, October 28, 2012

Too-big-to-fail banks should be made smaller, and preferably small enough to fail without causing global panic.

Monday, May 10, 2010

With unemployment obstinately high and fiscal policy on ice, the Federal Reserve will continue to push down long-term interest rates. Further rounds of quantitative easing will tend to weaken the dollar. This is a much more effective way to move our currency than any foreign-exchange market intervention.

Tuesday, September 28, 2010

Clearly, the Fed chairman recognizes the severity of the problem and has decided to do whatever it takes to prevent anything like the Great Depression from happening again. Given where we are today, that means printing money, even if that runs the risk of creating a serious inflation problem.

Sunday, April 5, 2009
Against:

Edward Conard

12 Items
Edward Conard
  • Visiting Scholar, AEI & Former Partner, Bain Capital
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Jared Bernstein argues, “The new rules must prioritize the economic needs of low- and middle-income families while preserving the democratic, accountable policymaking processes that are essential to creating and maintaining the environmental, consumer, labor, and human-rights policies on which we all rely.”

Thursday, September 22, 2016
Source
Thursday, May 1, 2014
Source

The Fed has printed more than $2 trillion of money since the financial crisis -- a fourfold increase -- with little, if any, effect on growth or inflation.

Thursday, November 21, 2013

If QE was working — if it created more value than it cost — why would the Fed reset policy expectations prematurely while unemployment is still at 7.5%, and even higher if you include the underemployed?

Monday, July 1, 2013

Edward Conard, former partner at Bain Capital, talks with Betty Liu about the impact of pending immigration legislation on the Republican party and explains why he believes the Fed has failed with quantitative easing. (Quantitative easing conversation begins at 3:01.)

Thursday, July 2, 2015

For the U.S. economy to reach its full potential, Washington should return to the policies that drove economic growth over the past two decades: lower federal spending and less onerous government regulation.

Monday, May 13, 2013
Source

It’s clear from the evidence: what overwhelmingly makes a person poor, whether African American or white, is an inability or failure to complete school and being raised by an unmarried parent.

Wednesday, August 27, 2014

Raising the minimum wage reduces lower-skilled employment.

Thursday, August 21, 2014

When you look at the amount of profit being made by investors, it’s very small in comparison with the value to consumers.

Friday, May 16, 2014
Source

The left has blamed the success of the 1% on the slow growth of middle incomes. If income inequality were truly bad for the middle class, we would not have seen the outsized growth in employment in the U.S. relative to Europe and Japan.

Wednesday, April 30, 2014
Source

Chetty and Saez’s new study, “Is the United States Still a Land of Opportunity? Recent Trends in the Intergenerational Mobility,” debunks the notion that income mobility in the U.S. has declined.

Thursday, January 23, 2014

Edward Conard’s blog.

Wednesday, December 31, 1969
Against:

Andrew Huszar

5 Items
Andrew Huszar
  • Sr. Fellow, Rutgers Business School
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Friday, November 13, 2015

We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.

Monday, November 11, 2013

TIME spoke with Huszar about role in quantitative easing and why he publically called for the policy’s reversal.

Wednesday, November 13, 2013

More than any other American, Tim Geithner personifies the era when we lost our nerve when it came to reining in the size and concentration of Wall Street’s banks.

Wednesday, May 14, 2014

In this video, Huszar discusses quantitative easing with CNBC’s “Fast Money” team.

Tuesday, November 12, 2013
Source

FOR

6 Items
down

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

7 Items
down

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

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

3 Items
down

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

2 Items
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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 11tn round of QE on Thursday, years after other world central banks embarked on monetary stimulus

Thursday, January 15, 2015
Katie Allen

Federal Reserve

1 Items
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The U.S. Federal Reserves 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 Feds balance sheet  an amount roughly equal to the size of the German economy.

Wednesday, September 16, 2015
Jeff Kearns

European Central Bank

3 Items
down

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

3 Items
down

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

Introductory videos on quantitative easing.

Wednesday, December 31, 1969
Tuesday, August 4, 2015
Buttonwood

Bank of Japan

3 Items
down

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