Friday, Mar 17, 2017

QE, asset-price inflation and wages

Bloomberg: Here’s One Chart That Captures the Debate Over QE

First chart shows the 'stellar' gains in world asset prices since 2008 and the sluggish growth in the economy.
“We don’t know how effective QE has been (i.e. for the real economy) because we don’t know what would have happened without it,” said Peter Oppenheimer, chief global equity strategist at Goldman in London. Falling interest rates supported most financial assets, while for the economy “QE has been effective to prevent downside risk,” he said.
Any suggestions for a translation of this quote?
Third chart shows how ballooning central bank balance sheets have ballooned equity prices.
Will the Fed rein back QE and raise Treasury yields and mortgage securities?

Posted by icarus @ 01:11 PM (1517 views) Add Comment

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