Friday, July 26, 2013

If QE Is Helping Only The Financial Sector, Maybe It Was Meant To

Robert Skidelsky in The Economist here, referencing John Kay in the Financial Times:


"All of this led John Kay to wonder why so much attention was given to unconventional monetary policies ‘with no clear explanation of how they might be expected to work and little evidence of effectiveness?’ His answer: they are helpful to the financial services and those who work in them."

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QE is medicine for sick banks, not sick economies.