...a continuing saga.
The claims print this a.m. coupled with the above chart is leading players to believe more Quantitative Easing is imminent.
Unfortunately, the effects they think QE will have will not come to fruition. Again, these are asset swaps between instruments of varying maturities and will not have the desired effect on Aggregate Demand.
The Fed has much less power than mainstream economists believe.
Only Fiscal policy will achieve the desired effects, but with the constant clamour from Deficit Hawks, the Goverment's role as "spender of last resort" appears weak.
No comments:
Post a Comment