4 ms·
The thing about quantitative easing is that it is not producing much if any inflation and that is because it is not the same thing as printing money as so many
by cdash 13y ago
The thing about quantitative easing is that it is not producing much if any inflation and that is because it is not the same thing as printing money as so many people like to call it and distributing it to everyone in the US.
This is mainly because all that money that is being injected into the banks is not going anywhere. They are not lending it out but keeping it in a vault.
To show a graphic of this here is a chart of bank excess reserves held which is the amount of money held over the reserve requirement.
http://upload.wikimedia.org/wikipedia/en/8/81/EXCRESNS.png http://upload.wikimedia.org/wikipedia/en/8/81/EXCRESNS.png
This is actually out of date and the total is now at 2.3 trillion.
- digitalengineer 13y agoLooks like they cannot end QE-to-∞ Reuters "The Fed has no clue what will happen when it starts selling assets," IMF Chief Economist Olivier Blanchard told a meeting of the Institute of International Finance in Paris. "So it cannot make any commitments in term of quantities." http://uk.reuters.com/article/2013/06/25/us-economy-imf-idUKBRE95O0FV20130625 http://uk.reuters.com/article/2013/06/25/us-economy-imf-idUK...