quantitative-easing   167

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Anleihekäufe führen nicht zu Inflation: Kolumne von Wolfgang Münchau - SPIEGEL ONLINE
Wenn Sie sich jetzt die Anleihenkäufe der englischen oder der japanischen Zentralbank anschauen, dann ist genau das passiert, was ich gerade beschrieben habe. In beiden Fällen wurde die Geldbasis massiv erhöht. Die Geldmenge bewegte sich nicht. Warum kaufen Zentralbanken die Wertpapiere dann überhaupt? Sie hoffen auf indirekte Effekte, die am Ende einer langen Kette vielleicht doch auf die Geldmenge wirken. [...] Nur leider hat das in Japan zwei Jahrzehnte lang nicht funktioniert. Und bei uns bislang auch nicht. Dafür gibt es verschiedene Gründe: [...] [... overarching trend; a flattening of the curves (of disparity) across the world concerning economic ?pillars?: work type (more advanced work in the supplychain in china & not just labour intensive stuff only. more & more added value done in BRIC, East Europe, ...) #labourmarket, #consumption, #demographics, #edu, savings, social safety net, western style democracy et al) ... fall of Iron Curtain was beginning of process Angleichung]
liquidity  trap  Japan  BOJ  Fed  BOE  ECB  quantitative-easing  QE  ZIRP  NIRP  OMT  TLTRO  LTRO  TARP  POMO  equity  bubble  asset  bubble  asset  allocation  hunt  for  yield  sovereign  debt  crisis  Richard  Koo  lost  decade  economic  history  monetary  transmission  mechanism  monetary  theory  business  confidence  consumer  confidence  zombie  consumer  zombie  banks  business  investment  trust  trustagent  fiscal  policy  austerity  IMF  BIS  centralbanks  confidence  deleveraging  debtoverhang  Super  Cycle  consumer  debt  debt  bubble  debt  monetization  debt  monetisation  debt  restructuring  haircut  monetary  policy  monetary  system  fiat  currency  deflation  deflationary  inflation  targeting  inflation  expectation  flat  world  globalization  globalisation  faultlines  infrastructure  investment  Structural  Impediments  imbalance  competitive  competitiveness  China  BRIC  Frontier  Markets  Developing  global  trade  macroeconomics  microeconomics  labour  market  labour  economics  21stcentury  Software  Is  Eating  The  algorithm  Robotics  automation  Niedriglohnsektor  lohndumping  Lohnzurückhaltung  disposable  income  Mobile  Creative  Mobile  Creatives 
november 2014 by asterisk2a
Understanding Quantitative Easing
Many myths are still floating around regarding the actual operational aspects and impacts of quantitative easing, also known as permanent open market operations.  This primer will offer a series…
economy  Reference  quantitative-easing 
december 2013 by mikekellogg
Andrew Huszar: Confessions of a Quantitative Easer - WSJ.com
I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time. Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system's free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs. The Fed said it wanted to helpΓÇöthrough a new program of massive bond purchases. There were secondary goals, but Chairman Ben Bernanke made clear that the Fed's central motivation
economics  economic-collapse  foolish  federal-reserve  quantitative-easing  QE3  Delicious 
november 2013 by whatithunk
BBC News - Should Bank start the helicopter?
Will the giraffe accept the yo-yo? It's a discussion of a 'helicopter drop' of money into the economy, and a fairly good one at that, I just love the surrealness of the title.
posttofacebook  financial-crisis  money  economics  quantitative-easing  amusing 
october 2012 by FearMeForIAmPink
BIS Official Warns of Central-Bank Overreach - WSJ.com
BIS warns of unintended consequences of more unorthodox easing measures as politicians agree to not agree bc of their principles. Not able to acknowledge that they/we sit all in the same boat.

***

The unconventional measures introduced by many central banks in response to financial turmoil could create other problems if carried out for too long, the general manager of the Bank for International Settlements said Sunday.

“A worry is that monetary policy would be pressured to do still more because not enough action has been taken in other areas… “Fiscal adjustment, the repair of banks’ balance sheets and other reforms cannot be put off in the hope of better times,” Mr. Caruana said. “Relying only on central bankers but failing to act on other fronts would ultimately damage confidence and increase the risks to macroeconomic and financial stability.”

"These emergency measures could have undesirable side effects if continued for too long,"
centralbanks  India  Brazil  BRIC  australia  Canada  BoC  bubbles  PBoC  China  UK  PIIGSFB  PIIGS  USA  sovereign  debt  crisis  quantitative-easing  QE  operationtwist  ZIRP  unintended  consequences  BoJ  ECB  BoE  Fed  policy-makers  policy  folly  policy  error  politics  trust  trustagent  monetary  theory  System  monetary  policy  BIS 
june 2012 by asterisk2a
Why Corporate Balance Sheets Just Don't Matter In The New ZIRP Normal | ZeroHedge
What, however, people do not know is that under ZIRP, when every basis point of debt return over 0% is praised, and an epic scramble ensues among hedge for any yielding paper no matter how worthless, the balance sheets of companies just do not matter. In other words, for companies that have massive leverage, high interest rates, negative cash flow, which all were corporate death knells as recently as 2008, the capitalization structure is completely irrelevant.
quantitative-easing  unintended  consequences  new-normal  QE  ZIRP 
may 2012 by asterisk2a
Dallas Fed's Fisher "Perplexed" By Wall Street "Fetish" With QE3 And Disgusted With The Addiction To "Monetary Morphine" | ZeroHedge
complaining about, get this, Wall Street's "continued preoccupation, bordering upon fetish" with QE3. The irony continues: "Trillions of dollars are lying fallow, not being employed in the real economy. Yet financial market operators keep looking and hoping for more. Why? I think it may be because they have become hooked on the monetary morphine we provided when we performed massive reconstructive surgery, rescuing the economy from the Financial Panic of 2008–09, and then kept the medication in the financial bloodstream to ensure recovery....I believe adding to the accommodative doses we have applied rather than beginning to wean the patient might be the equivalent of medical malpractice."

- ECB's Nowotny did sound the alarmbells too two weeks ago
addiction  quantitative-easing  Fed  BOE  ECB  greatrecession  GFC  sovereign  debt  crisis  liquidity-trap  monetary  policy  unintended  consequences  LTRO  QE  ZIRP 
march 2012 by asterisk2a
The ECB's LTRO and the Fed's testimony: How to read a central bank | The Economist
First, the European Central Bank conducted its second three-year Long Term Refinancing Operation. (You can read my colleague’s take here.) Second, Ben Bernanke, chairman of the Federal Reserve testified to the House Financial Services Committee, and hinted that more quantitative easing - the purchase of bonds by printing money - was a bit less likely. He called the recovery "uneven and modest by historical standards" but that was better than "frustratingly slow,” the description he used at the start of this month.

> On little change in the wording of the testimony set of a good slide in Gold and EUR, and a good rise in USD. One little change.
reflation  2012  benbernake  ZIRP  quantitative-easing  liquidity-trap  LTRO  QE  Fed  ECB 
march 2012 by asterisk2a
Mario Draghi Is Becoming Germany's Most Hated Man | ZeroHedge
The huge take-up at Wednesday's so-called LTRO meant that in the space of two months the ECB has injected over a trillion euros into the financial system.

- liquidity does not solve insolvency.
- may buy time, but also prone to wreak havoc

But, but, it's all in the name of perpetuating the ponzi. Forget that it is the Germans who are paying the bill.

Draghi is already at odds with some powerful voices in Germany, taking a nonchalant view last month about the TARGET2 imbalances.

The Bundesbank considers the TARGET2 imbalances a symptom of underlying problems in the currency bloc and is watching them with increasing concern as they reflect a stronger reliance of banks in weaker euro zone countries on cheap ECB funding and growing risks on those countries' central banks balance sheets.
reflation  inflation  target2-system  MarioDraghi  bundesbank  Europe  structural  imbalance  ZIRP  unintended  consequences  quantitative-easing  QE  monetary  policy  ECB  2012  LTRO 
march 2012 by asterisk2a
Quantitative easing: Just more of the same? | The Economist
THREE years ago the Bank of England, which had already cut interest rates to record lows, wheeled out a new, unconventional tool to stimulate the economy. It would buy government debt using newly-created cash—a policy that became known as “quantitative easing” or QE. The Bank is now a market mammoth, owning over 30% of the £940 billion ($1.5 trillion) pool of outstanding government bonds. It is set to get bigger: on February 9th the Bank's monetary-policy committee authorised £50 billion of new purchases over the next three months. But is this strategy working?
...

The Bank estimates its first injection of QE boosted Britain’s GDP by up to two percentage points and inflation by up to 1.5 points. Inflation is projected to fall well below the Bank’s 2% target in 2013, justifying further easing, according to Jens Larsen at RBC Capital Markets.

Yet QE has not made life much easier for British businesses.
liquidity  mittelstand  SMB  SME  quantitative-easing  sovereign  debt  crisis  creditcrunch  currency-war  debtoverhang  leverage  reflation  2012  monetary  policy  QE  BOE 
february 2012 by asterisk2a
Quantitative Easing is destroying UK economy and savers (09Deb12) - YouTube
UK is one of the worst cases of indebtedness in Western world (private + public + corporate debt to gdp).
But private debt composition is different to other western nations due to ie mortgages.
2012  monetary  policy  BOE  UK  lesson  Japan  QE  economic  history  economic-thought  book  RichardWerner  quantitative-easing 
february 2012 by asterisk2a
The euro crisis: The ECB's tricky route to stabilisation | The Economist
the ECB's actions have had a dramatic impact on sovereign yields at all durations. On the other hand, it has not been successful at reversing a reduction in lending that threatens the real euro-zone economy.

As the piece explains, the ECB's is a useful strategy, but one which has in some ways increased the risk to the single currency of a renewed loss of confidence in sovereign solvency. An unsatisfactory outcome to the Greek debt negotiations could help trigger such a reversal, as could the recession generated by the present credit crunch. For all its success, the ECB hasn't shepherded the euro zone out of trouble entirely, and it may yet find itself needing to buy large quantities of government bonds.
capital-flight  PIIGS  moneymarkets  moneysupply  monetary  theory  monetary  policy  creditcrunch  Europe  sovereign  debt  crisis  2012  Fed  BOE  quantitative-easing  LTRO  ECB 
february 2012 by asterisk2a

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