Tuesday, July 20, 2021

No one ever envisioned QE as tempoorary

Mish

Lords: In the UK, quantitative easing was envisaged, at the point of introduction in 2009, as a short-term measure to support the economy through the global financial crisis. However, over the last decade or so, the programme has expanded substantially, and it has become the Bank of England’s main monetary policy tool. 
Mish: It was supposedly going to be short-term everywhere. It wasn't.

Who really thought it was temporary? No foolish monetary theory would predict this as temporary. Nor did any of the traders mentions in the press. 

QE is and was always the last vestige of desperate before a devaluation.

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