AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (9 comments)

  1. juandos

    It may not have sparked a boom, but it has done a fair job of offsetting near-term fiscal drag from the fiscal cliff tax hikes and sequestration“…

    Meanwhile in the real world we have: U.S. borrows 46 cents of every dollar it spends

  2. Nickolaus

    Aren’t there a lot more factors at play here than Fed policy? Maybe the ECB policy is the correct policy with all other things equal — which they obviously aren’t.

  3. Reality to Jimmy. The Fed is not all that different than the ECB and both need to be ended. As for the US, the biggest difference between it and France is the accounting that hides many of the warts.

  4. So…one quarter?
    Well, I guess the evidence is in then.
    Certainly proves it’s not just more sugar high economics.

  5. mesa econoguy

    Success via bond buys? Hello? The only success of the repetitive QEs has been to stimulate equities prices:

    http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/03/Fed%20vs%20S%26P.jpg

    It sure as hell hasn’t worked to stimulate a recovery (worst one on record).

    Japan is going all-in, and as Paul observes, 1 quarter does not an uptrend make, especially after a 22 year malaise.

    The ECB is even worse, attempting to cobble together a monetary solution to an ultimately political division – ain’t gonna work, no matter how many LTROs and OMP threats you make.

    1. Success via bond buys? Hello? The only success of the repetitive QEs has been to stimulate equities prices:…

      Like most of the AEI commentators Jimmy panders to power. That is good for Jimmy because he makes a decent living and gets a great deal of exposure. The reality of what the Fed does is not much of a concern because his position largely insulates him from the downside and will continue to do so until the system breaks for good. As such he is unconcerned with the problems that the process of monetizing debt is creating and will cherry-pick any data that supports his narrative. When Japan collapses entirely he will ignore the events and blame them on not monetizing debt earlier and faster.

      1. mesa econoguy

        Agreed, Vangel, but Jim is odd in that he appears to understand part of the stimulus picture (it isn’t working), but continues to believe in Phillips Curve mythology (it isn’t working).

        Now, let’s see if he can construct a cogent narrative which encompasses both the moral hazard problems of TBTF (and everything else) and a reasonable pro-growth agenda in this political environment.

        He needs to make that next leap, methinks.

  6. Benjamin Cole

    Smart blogging.

    Jeez, can the right-wing give it a rest when it come to the howling for “tight money and a gold standard?” And then there is the genuflecting to a “strong dollar” as if American might and an overvalued greenback are connected.

    Sometimes, you have to forget the ideologies, the dogmas, the partisan hysterics, the models, the theories.

    You have to go with what works.

    QE works. I just the wish the Fed would really our it in.

    You see I like prosperity.

    And a cruddy economy does not good for anyone, and may even lead to more socialism.

    Bombs away Fed, bring in the money B-52s and don’t let up!

    1. Jeez, can the right-wing give it a rest when it come to the howling for “tight money and a gold standard?” And then there is the genuflecting to a “strong dollar” as if American might and an overvalued greenback are connected.

      On the issue of money the National Socialists agree entirely with the Socialists. Both the left and right want money printing so that the big government policies can continue. Their disagreement is only about which of their beloved programs should be expanded and which cut.

      QE works. I just the wish the Fed would really our it in.

      The evidence shows that QE does not work. All of the gains go to the financial sector as the real economy stagnates and ordinary people become poorer.

      QE works. I just the wish the Fed would really our it in.

      You are showing way too much love for the gold bugs you claim to despise.

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