Archive for July 2nd, 2011

Did QE work?

July 2, 2011

St Louis Fed hosted a conference on the topic.

Papers presented look at whether QE worked or not in variety of ways — domestic economy, international economy, financial markets etc. Papers say QE worked in most of these cases.

Speech by St Louis Fed President James Bullard is a nice one full of graphs showing QE2 worked. He asserts the evidence shows central bank is not bound at zero rates.

Well, there is just one thing. Most of the evidence is related to financial markets. It is being assumed that low rates would have helped real economy. We need more evidence on that..

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