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That’s a half truth, if you want to sell lots of treasuries at low yield, which was the case, you have to QE. There is a clear benefit to low yield debt in defi
by ivalm 5y ago
That’s a half truth, if you want to sell lots of treasuries at low yield, which was the case, you have to QE. There is a clear benefit to low yield debt in deficit spending, and so far no real harm (>10 years later!)
- b9a2cab5 5y agoI would argue an asset bubble is quite a real harm, especially to future generations that are getting into the market at the current inflated valuation levels. But to each their own.
- ivalm 5y agoAsset prices as they impact real people are reflected in CPI, which shows low inflation. The fact that cash flow instruments are higher priced (and that’s largely because of low interest rather than QE) is kind of orthogonal to most people’s lives.