Those who believe in quantitative easing certainly have their experiment, writ large in Tokyo.
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This was a point that I outlined in Quantitative Easing in the Eurozone.
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Blind faith in quantitative easing is not a good basis for monetary policy.
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The Bank of Japan engaged in quantitative easing earlier this decade, buying government debt and raising commercial bank reserves.
There is clearly a ferocious debate within the ECB over whether and how to engage in quantitative easing should the economic outlook deteriorate.
Sir Mervyn also told a press conference that he had not "lost faith" in quantitative easing as a way to stimulate economic growth.
The hard place is the Federal Reserve, which could also engage in quantitative easing, weakening the dollar, defying the attempts of the BoJ and crushing anyone who is long this pair.
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China asserts the US is the super villain since they consider the most recent 600 billion in quantitative easing a scheme to give US exporters an unfair advantage one that endangers the global economy.
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While Mr. Bernanke may be hearing a fair amount of cat calls from the crowd these days regarding the effectiveness of his adventures in quantitative easing, his detractors (a group that seems to be growing with each uptick in bond yields) may be missing the point.
By re-purposing these funds, the Fed would not have to engage in further quantitative easing but may be able to further stimulate the real economy with funds already in existence and thus place no, or at least minimal, additional risk on the tax payer.
Conventional wisdom says the market has been pricing in massive quantitative easing since the Jackson Hole Fed retreat, and the upcoming announcement, if it comes in light of expectations, could trigger a strong sell-off.
It said unemployment remained too high for a change in its quantitative easing policy.
As many as 76 percent see a soft landing in China and expect quantitative easing in Euroland.
In principle, there are three ways in which quantitative easing could help the economy: 1) by stopping a classic liquidity crisis (e.g.
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Some analysts said the jobs data could mean the Federal Reserve will stay in a quantitative easing mode longer than the market expects.
Stocks have been on the rise recently, thanks in large part to speculation that the Federal Reserve will engage in more quantitative easing to spur the economy.
In the quantitative easing followed by the Federal Reserve and the Bank of England the money was created by simply expanding the balance sheets and literally printing money.
Hence the Fed is going to rates sweet and low for many months to come and engage in more quantitative easing as it strives to maintain the tepid expansion.
The measures the Federal Reserve has taken to ease interest rates resulted in a second round of quantitative easing in November.
Indeed, the evidence seems increasingly clear that ultra-loose monetary policy in general and quantitative easing in particular simply reduces the pressure to act.
The U.S. Capital Markets are in sync in anticipation of quantitative easing three from the Federal Reserve when they meet next in September, as the European Central Bank seems to be on an August vacation after guaranteeing a bailout just a couple of weeks ago.
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But, with interest rates already at zero and the Bank of Japan having already engaged in the biggest quantitative easing effort on the planet, it could be that even with all the will in the world, the task may simply prove impossible.
In America, two rounds of quantitative easing, in 2008 and 2010, have produced only mixed results.
Gold saw a precipitous drop in late February after Chairman Bernanke appeared to rule out further quantitative easing in his testimony before Congress.
In reality, quantitative easing will produce the exact opposite of its intended result.
Going into September stocks rallied in anticipation of quantitative easing moves around the globe, and yields rose after the Federal Reserve announced QE3 on September 12.
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Mr. Roubini says that if the ECB is worried about the euro's strength undoing the good work of governments, it should act by following other major central banks in aggressive "quantitative easing" purchasing assets to pump money into the euro-zone economy.
In the U.S., stocks have held up relatively well in spite of gloomy economy reports in part because of expectations that the U.S. Federal Reserve will soon step in with a third round of quantitative easing, known in the market as QE3.
In the past month, as the European Central Bank (ECB) has been buying European government bonds in a belated quantitative easing program, Greece has received clear support as the two- year spread on its paper over Germany has widened by just 61 basis points or 0.61%.
In early March, the Fed Chair played down the prospects of additional quantitative easing in testimony before Congress.
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