AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (4 comments)

  1. mesa econoguy

    No Summers = no taper

    No taper = QEInfinity (at least for now).

    QEInfinity = Futures +1%, gold up, USD down

    There is a real danger that the Fed can never taper now.

  2. Benjamin Cole

    Mesa-
    Never say never.
    Anyway, the Fed had plenty of money. Another few years of this may work.

    1. Benjamin Cole

      That should read “has plenty of money.”

    2. mesa econoguy

      If by “work” you mean “create an untenable situation whereby an unstable balance sheet grows ever larger, making unwinding and exiting positions increasingly risky, and further increasing market dependence on stimulus, making taper impossible,” then you are correct.

      Your slip was also correct.

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