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The $xxxxB sat in banks as excess reserves that the Fed paid interest on. None of it hit the real economy.
by ArkyBeagle 11y ago
The $xxxxB sat in banks as excess reserves that the Fed paid interest on. None of it hit the real economy.
- rsmckinney 11y agoThis is my favorite part. This is how most keynesians react when confronted with the harsh realities of QE. This and "the consumers just aren't spending enough." Ofc it's never enough QE and never enough spending. Meanwhile that creaking sound....
- ArkyBeagle 11y agoI'm a Market Monetarist, not a Keynesian.
- dragonwriter 11y agoMost Keynesians I've seen seem to think QE is a fairly weak tool, from a "complete control of policy" perspective, but that it remains, in certain circumstances, marginally better than the central bank doing nothing while the government also fails to execute fiscal stimulus when it is needed.