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he said QE would cause a recovery in the loan market. Can you provide a citation for that claim? Because my recollection is that he said QE would have limited
by rquantz 13y ago
he said QE would cause a recovery in the loan market.
Can you provide a citation for that claim? Because my recollection is that he said QE would have limited effects. I can't find much supporting this memory right now, aside from this entry about QE2[1]. He definitely supported QE, but I don't think he ever argued it would fix everything by itself. He's consistently argued that the Fed can't fix things by itself.
On the other hand, here's this entry where he says that, contrary to what you suggest, the whole point of QE is to cause inflation [2].
[1] http://krugman.blogs.nytimes.com/2010/10/23/how-to-think-about-qe2-wonkish/ http://krugman.blogs.nytimes.com/2010/10/23/how-to-think-abo...
[2] http://krugman.blogs.nytimes.com/2009/03/20/fiscal-aspects-of-quantitative-easing-wonkish/ http://krugman.blogs.nytimes.com/2009/03/20/fiscal-aspects-o...
- pdonis 13y agomy recollection is that he said QE would have limited effects You're correct, he did say that back in 2008. See Amezarak's post in response to me upthread. he says that, contrary to what you suggest, the whole point of QE is to cause inflation I think he meant that the Fed thought it would cause inflation. But he has said a number of times that if the economy is in a "liquidity trap", printing more money will not cause inflation. (QE is one way of effectively printing more money.)
- deleted 13y ago[deleted]