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I don't see QE as a problem. It's not counted as debt and it...

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26/08/20

16:56

Post #: 46840566
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Originally posted by ididwork: ↑

QE is the easy way out. A bit like drugs or alcohol. Instead of addressing the problem, you can make it 'not exist'.

Of course, when the person is confronted about their substance abuse, the will likely be in denial. Moreover, once they are on that slippery slope, they then will eventually have two problems to the fix. The original problem, as well as the addiction.

Not many can come back from that. I would say the same goes for nations, that go down the path of QE.

The FRB Balance Sheet pretty much says it all.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

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I don't see QE as a problem. It's not counted as debt and it serves its purpose in keeping interest rates near zero in difficult times. You seem to see QE as a symptom of aberrant bank behaviour. Recent central banks QE was an urgent response to the economic contraction caused by covid-19.

Why is an easy way out? (out of what)
What is the problem you think needs to be addressed?
What would happen if central bank did nothing?
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