tag:blogger.com,1999:blog-5713178645208582139.post5786709315163289028..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: A Surprising Look Back at the Fed's QE ProgramsDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5713178645208582139.post-30396820611608128142014-07-27T12:46:11.565-05:002014-07-27T12:46:11.565-05:00Keynes wasn't around when the NBs became domin...Keynes wasn't around when the NBs became dominant economic fixtures. I.e., you neglect to follow the use or non-use of voluntary savings when analyzing the supply of and demand for loan-funds. And there were contrary operative regulatory forces that significantly impacted the term-structure of world-wide free market interest rates. As Bankrupt U Bernanke destroyed the NBs by introducing theSalmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-9127401495258911992014-07-25T08:36:29.984-05:002014-07-25T08:36:29.984-05:00If I am understanding the data in your post correc...If I am understanding the data in your post correctly then it looks like the US govt run a huge bond-funded deficit for the years in question. Despite this huge deficit AD was still too low so additional QE was needed to further boost it.<br /><br />Is that a correct understanding ?<br /><br />If so then I have a question:<br /><br />What about the countefactutal where the budget was much Market Fiscalistnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-23158864335193737592014-07-24T16:54:09.354-05:002014-07-24T16:54:09.354-05:00Prof. Beckworth, can I ask what you expect to happ...Prof. Beckworth, can I ask what you expect to happen to <a href="https://www.dropbox.com/s/m0dxnkhpnrz39ix/monetary%20base%20and%20sp500.JPG" rel="nofollow">this graph</a> when QE3 ends? Will the S&P 500 be able to keep growing steadily? Thank you.<br />Mauriziohttps://www.blogger.com/profile/00234058781177355541noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-5498807878982401022014-07-24T16:24:53.822-05:002014-07-24T16:24:53.822-05:00"The QE programs increased the economic outlo..."The QE programs increased the economic outlook and that, in turn, reduced the risk premium on other assets. Investors, therefore, were more willing to hold other higher-yielding assets and this meant they had to be compensated more to hold the low-yielding treasuries"<br />Just look at what the stock market did during QE´s! João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com