Re:Break Up The Elite College Seats Cartel
by codelorado on Wednesday June 01, 2022 @10:37PM
(#31590641)
This comment highlights the most crucial insight on QE: it is a relatively novel monetary policy innovation that was implemented as an emergency response to the 2008 crisis on a very large scale and, as such, we had no experience using it. 14 years later, we’re finding out what it means for an economy to have the Federal Reserve buy a large amount of US debt.
[ Parent
| on HN ]
QE isn't novel by any stretch, even in 2008. The Federal Reserve had a similar program back in 1930s around the Great Depression and the Bank of Japan has had a full-swing QE program since like 2001.
It wasn't that long ago the USA confiscated gold from its citizens via President Roosevelt's Executive Order 6102 in 1933.
Re:Break Up The Elite College Seats Cartel
by jjeaff on Wednesday June 01, 2022 @11:04PM
(#31590837)
I don't think we are finding out that much. Most other countries are experiencing the same inflation we are and not all of them deficit spent a lot during the pandemic. Nor do most even have that power.
Surely some of the inflation and really low unemployment is due to QE. But it's likely a lot more of it is due to an economy growing while the active workforce is shrinking and external factors like the pandemic and war in Ukraine causing supply issues.