tag:blogger.com,1999:blog-5713178645208582139.post8906321039831373543..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Oh No, QE2 Might Actually Work!David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-64370691299673623672010-11-29T00:57:54.728-06:002010-11-29T00:57:54.728-06:00Quantitative easing most certainly will increase p...Quantitative easing most certainly will increase political pressures on the Fed. Given the breathtaking manner in which they have departed from their original mission to promote price stability, and the morally dubious effort to "rescue" the economy at the expense of savers and retirees, opprobrium is not only to be expected, but, in my opinion, deserved.<a href="http://Paraghttps://www.blogger.com/profile/06252372041858393646noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-41440151928939789752010-11-28T13:20:10.114-06:002010-11-28T13:20:10.114-06:00The real question is, will QE2 produce a recovery ...The real question is, will QE2 produce a recovery that will boost rates and spur a fiscal crisis, or will it be lackluster and then tax revenues drop precipitating a fiscal crisis which will lead to high rates and destroy and already dismal credit market in the US.<br /><br />My money is on the latter.Unknownhttps://www.blogger.com/profile/08229880658386917340noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-45506874809271265802010-11-28T08:35:09.609-06:002010-11-28T08:35:09.609-06:00I think Lindsey was arguming for dramatic fiscal r...I think Lindsey was arguming for dramatic fiscal restraint, not against quantitative easing. <br /><br />It seemed to me, however, that he ignores the impact of higher inflation on tax revenues, while accounting for the impact on nominal interest rates and interest expense. (Perhaps that was included in his budget forecasts.) Only the real growth part helps with tax revenue in his discussion.Bill Woolseyhttps://www.blogger.com/profile/06330232724290161369noreply@blogger.com