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Why doesn't the government stops with QE already ? With both houses prices inflating, and huge sums of money going into automation startups and investments, th
by petra 7y ago
Why doesn't the government stops with QE already ?
With both houses prices inflating, and huge sums of money going into automation startups and investments, the future looks scary, for regular people.
Yes, automation will happen anyway. But why accelerate this very disruptive process(Although one that transfer a lot of power to the already powerful) ? Isn't it better to slow it and have it in a more controlled fashion ?
- wrong_variable 7y ago> Why doesn't the government stops with QE already ? Without QE many people's retirement saving would have been wiped out, along with jobs. You would have a period of large scale joblessness and homelessness. In early part of this decade Ben Bernanke said that he would continue QE until unemployment rate dropped below 6.5% or inflation rose above 2%. I agree that the easiest solution would have been a jobs guarantee or better yet print money and send everybody a cheque. But that would have been outside the Fed's mandate. It's not clear how the situation resolves, currently inflation is low and joblessness is also low ; so the fed seem to have done their job. The questions you raise can only be solved through a political process, not monetary policy.
- mywittyname 7y agoThe US Government stopped QE in 2014. The ECB continues QE because Europe's economy never really recovered. The Bank of England restarted QE when Brexit was announced.