Quote:
Originally Posted by RedFred
Has absolutely nothing to do with GDP.
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QE and economic improvement is acknowledged at the same time to be at best indirect, and is frequently explained in terms of a wealth effect. In this view, the Fed's purchase of bonds (Treasuries and mortgage-backed securities) reduces the corresponding interest rates, which eventually raises other asset values (e.g., stocks and real estate), and
the new wealth generated stimulates private sector spending, which increases GDP.
https://seekingalpha.com/article/147...and-gdp-growth