Wednesday, January 26, 2011

QE2 - a serious cartoon tells the story


It is amazing how a simple meme can take hold of the economic imagination. In this case, a cartoon video on quantitative easing 2 (QE2) called Quantitative Easing Explained. Chairman is referred to as "The Bernank". The Bernank could have made this policy a lot easier if he just said we are just going to create a lot of money and up that inflation expectations would go up which will cause consumers and investors to be buyers. There is no fancy policy just dropping "helicopter money" from the sky.

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