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Monday, August 24, 2015

St Louis Fed: QE was a Mistake?

This article here states that the St Louis Fed claims that the program of Quantitative Easing was a "mistake". Key excerpt here:

"Now, the very same St. Louis Fed (this time in the form of a white paper by the bank’s vice president Stephen D. Williamson), is out questioning the efficacy of QE when it comes to stoking inflation and boosting economic activity.

Williamson says the theory behind QE is “not well-developed”, and calls the evidence in support of Ben Bernanke’s views on the transmission mechanisms whereby asset purchases affect outcomes 'mixed at best.' "

Read the rest of the article here.

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