QE is a tax

Optimal quantitative easing

Bank Underground has a mode for how QE works.  strongest element is that QE is a rapidly rising cost on the bond market, a Fed tax.

In the equilibrium, the authors use bounded variation and discover that investors shift some investment away from government debt to private sector risk, if I read this right.

In the sandbox, this is the three color pit in which investors auto-trade by maintaining a triple entry accounting system; asset, liability, and tax reserve. The pit boss manages three queues, one of which is the queue of government draw downs on tax reserves.

Anyway, just to mention to the whole market, we got this covered in th Sandbox, do all the central banking with tax reserves, all you want, no problem. We can make it work, seriously, no problem quit fretting.