Thursday, January 16, 2014

No success with QE



Hat tip to a reader who sent me this graph. He stated that QE can be summed up in one picture. Note the switch from positive to negative correlation with the current QE program. The law of diminishing returns at work. Monetary policy is pushing on a string even for assets that are moving closer to bubble territory.

I guess we should put our confidence in forward guidance as the best policy choice?

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