QE: not cause, but symptom
“QE…works in practice but it doesn’t work in theory” Ben Bernanke If you ask people what Quantitative Easing does, you’ll get a list of answers as large as the Fed’s balance sheet. For many, it seems, the purchase of assets by central banks can be used to explain whatever their bugbear happens to be. Inequality? Overvalued stock markets? Inflation? Elevated house prices? Currency wars? Actual wars? Commodity price rises? At different points, all of the above have been pointed to