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4

There are at least three different ways to account for the impact of QE on banks (see The Effects of QE on Bank Lending Behavior) and the one that you cite is known as the "liquidity channel" of QE. As you say, and as per the comment by fesman to your question, taken in isolation, the substitution of risky assets such as MBS for excess reserves ...


3

I would say "no". With no quibbles about about the basic premise... Call it "QE", "SMP" (securities' market purchase) or any acronym for any variation thereof, the description of the situation is far from contested here. One can easily, in my view, just look at any central bank's balance sheet to get a feel for the quantum of &...


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