Talk:Quantitative easing

"Quantitative Easing" is a euphemism

"Quantitative Easing" is a euphemism for criminals counterfeiting money without having to worry about going to jail. — Preceding unsigned comment added by 76.25.148.181 (talk) 14:06, 29 September 2012 (UTC)

While I am sympathetic to this reaction, it is not accurate. QE3 is an attempt to stimulate mortgage lending by socializing risk and privatizing the associated profits with Wall Street banks. There is a lot of criticism in the financial press which editors here are completely missing because they believe it is equivalent to inflating the currency, which it is most certainly not. (The mortgage-backed securities involved are based on extremely illiquid assets which would never be considered part of the broadest money supply.) For instance, FOMC member Jeffrey M. Lacker:

"the impetus, I think, is to aid the housing market. That's an area that's fallen short in this recovery. In most other U.S. postwar recoveries, we've seen a pretty sharp snapback in housing. Of course, the reason it hasn't come back in this recovery is that this recession was essentially caused by us building too many houses prior to the recession. We still have a huge overhang of houses that haven't been sold that are vacant. And it's going to take us a while before we want the houses we have, much less need to build more."[1]

—Cupco 16:06, 29 September 2012 (UTC)

I think the OP is problematically arguing that the creation of money without a physical standard constitutes counterfeit, even when conducted by the government. This seems like far too philosophical a view to be expressed as fact here, not to mention that it's factually inaccurate. -- Avi 68.101.126.153 (talk) 14:05, 28 March 2013 (UTC)

This type of rant should be removed from the talk page. Darx9url (talk) 09:14, 14 June 2013 (UTC)

Types of QE

There seem to be very different types of QE.

I seem to identify at least three:

1.) "Stuffing bank reserves" by buying bonds while on ZLB, synonymous with conventional monetary policy while in a liquidity trap - the original BOJ "QE" (ineffective) 2.) Buying securities en masse, not only the short term ones usually employed in monetary policy - the first FED QE, BOE QEs (effective) 3.) "Perpetual QE" or QE3. It is different because it promises bond purchases until a certain condition are met, not a fixed "package" of purchases. According to Woodford, Krugman, Sumner, Bernanke and others it will have an effect on inflationary expectations (intentedly).

Sources: Paul Krugman: http://krugman.blogs.nytimes.com/2010/08/31/japan-1998/

" What do we mean by quantitative easing? • Originally used to mean continued conventional open market operations (buying short-term government debt to increase reserves) at the zero nominal bound. • Now used to mean unconventional OMO at the ZLB, such as buying long-term government bonds, MBS, or other assets. " On a slide by Christina Romer and David Romer, which you can get here: http://emlab.berkeley.edu/users/webfac/cromer/e210c_f11/e210c.shtml (Lecture 9)

proff. Mihov that explains that QE 1 and QE2 are "completely different beasts" in the video below this blog post: http://fatasmihov.blogspot.com/2012/01/big-day-for-fed.htm

I'm posting this in a Talk section because I'm not sure I'm not doing original research. This is basically jargon, not terminology. Jargon: 4. Speech or writing having unusual or pretentious vocabulary, convoluted phrasing, and vague meaning. intr.v. jar·goned, jar·gon·ing, jar·gons

I hope this helps someone; write me an email if something comes up: dimitar.ouzounoff@gmail.com 46.238.8.50 (talk) 18:38, 28 October 2012 (UTC)

In large part, I agree with what you have said. Unfortunately, I don't know of any reliable source that has explicitly detailed this issue. And we need one before adding to the article. The only thing related that I know of is Bernanke explaining why his QE (which he called qualitative easing) isn't the same as the Bank of Japan's QE, LK (talk) 06:09, 29 October 2012 (UTC)

Printing Money

1'DNTREMOVOPINIONS! I noticed there was some opinion floating around this section. Someone wrote something like, "printing money usually implies that the newly minted money is used to directly finance government deficits". I ended up removing that opinion and simply putting that the Fed uses newly created money to purchase financial assets. I started this section in the talk so that it can be further debated if needed. — Preceding unsigned comment added by Fatrandy13 (talk • contribs) 19:37, 18 December 2012 (UTC)

Potentially useful articles

Interesting and valuable for understanding -- not sure if any of it belongs in the WP article.

Federal Reserve Board's QE/Inflation intentions

http://www.theatlantic.com/business/archive/2013/02/the-2-mystery-why-has-qe3-been-such-a-bust/273381/

Concise summary of consequences, benefits and exit problems

http://www.slate.com/articles/business/project_syndicate/2013/03/quantitative_easing_all_your_questions_answered.html

-- Jo3sampl (talk) 15:37, 3 March 2013 (UTC)

References

Ref#7 on "Quantitative Easing Explained" is a dead link. There is a page with the smae title, possibly the same page, on http://www.bankofengland.co.uk/monetarypolicy/pages/qe/default.aspx 78.69.107.197 (talk) 20:55, 9 July 2013 (UTC)

QE as a way for inflation to stay above target?

The statement in the lead is somewhat counter-intuitive, since inflation can only be produced in the medium- to long-term because a short-term effect is the lowering of the interest rates through direct bond purchases. Since the only source given for the statement is a dead link, can someone either elaborate further here, or better still find an alternative source?cherkash (talk) 15:44, 3 September 2013 (UTC)
As QE increases the money supply it causes monetary inflation. If the BoE or Fed didn't buy the government debt then someone else would have had to with other money so it is just additional money going into the economy.--Caparn (talk) 23:40, 8 September 2013 (UTC)