"The underlying problem is structurally deficient demand caused by thirty years of neoliberal economic policies that have undermined the income and demand gener

"The underlying problem is structurally deficient demand caused by thirty years of neoliberal economic policies that have undermined the income and demand generation process (Palley, 2009). However, rather than fixing this problem, policymakers are again turning to ultra-easy monetary policy in the form of QE. Viewed from this perspective, QE can be interpreted as a form of asset market trickledown whereby supporting asset prices is supposed to jumpstart the macro economy…From a political standpoint, this is an enormous change from the world of forty years ago. The New Deal policy paradigm of wage floors and household income supports has been replaced by one of asset price floors and asset market subsidies. Viewed through a political lens QE therefore represents the triumph of plutonomics, and that makes it an obstruction to the extent it obscures the challenge of repairing the income and demand generation process." http://www.thomaspalley.com/docs/articles/macro_policy/quantitative-easing-a-keynesian-critique.pdf http://www.thomaspalley.com/docs/articles/macro_policy/quant...