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Yes, eventually the central bank will be repaid the dollars it spent, the money spent and injected into the economy will be withdrawn as QE winds down. Assumin
by dageshi 11y ago
Yes, eventually the central bank will be repaid the dollars it spent, the money spent and injected into the economy will be withdrawn as QE winds down.
Assuming QE ever ends of course.
- pas 11y agoUS QE has ended as far as I know. (https://en.wikipedia.org/wiki/Quantitative_easing#US_QE1.2C_QE2.2C_and_QE3 https://en.wikipedia.org/wiki/Quantitative_easing#US_QE1.2C_...) The purchased assets (treasury bonds and so on) are idling on the Fed's balance sheet. Eventually as bonds mature the Fed just cancels the newly-created-debt it used to buy the bond, and the asset just disappears from the balance sheet.