"The Fed's Quantitative
Easing program—which so far has consisted of the purchase of some $2.3 trillion
worth of Treasury, MBS, and Agency bonds, thereby more than tripling the size
of the Fed's balance sheet—has been so gigantic as to have been inconceivable
before it started, yet it has not done anything to stimulate economic growth or
push up the inflation rate. The economy is still mired in the Weakest Recovery
Ever, and inflation has dipped to its lowest point since the early 1960s. How
to explain this?
Perhaps the Fed should have done more?
Or perhaps it's because QE was never designed to be stimulative in the first place."
Perhaps the Fed should have done more?
Or perhaps it's because QE was never designed to be stimulative in the first place."
