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This time is different. The new money enters the system via central bank asset purchases, which lower the returns on those assets. These purchases push investor
by natrius 11y ago
This time is different. The new money enters the system via central bank asset purchases, which lower the returns on those assets. These purchases push investors into asset classes with higher returns, raising the prices of all assets as a result.
- maxerickson 11y agoAn additional buyer shouldn't have the effect of lowering the rate of return on an asset.
- merpnderp 11y agoMore money chasing the same asset will lower its rate of return.
- natrius 11y agoThis ain't any old additional buyer. This buyer prints its own money. http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-5 http://www.economist.com/blogs/economist-explains/2015/03/ec...