I hear QE being disparaged a lot, but I'm not sure why. The world economy has been in a doldrums, and QE was the only monetary lever left to pull (given that fi

I hear QE being disparaged a lot, but I'm not sure why. The world economy has been in a doldrums, and QE was the only monetary lever left to pull (given that fiscal tightening, rather than expansion, was the political calculation). Look, interest rates are low because the world has a deficit of assets that offer a good return. More to the point, dollar-denominated interest rates are low because the world seeks stability in the dollar. Capital flows reflect this, and Fed policy is only a tiny input to the overall system. In fact, QE and fed policy in general is reactive to global macro; we assume it has much more influence than it does, particularly when much of the developed world is in a liquidity trap. There are serious macro debates going on (secular stagnation? decreasing productivity returns from tech?). But whether or not QE is "ridiculous" isn't actually a serious debate. Unless you care more about equity prices than overall growth -- but I think that's missing the forest for the trees. Railing against QE without understanding the context (including the lack of alternatives) isn't particularly illuminating.