Sorry!! The article you are trying to read is not available now.

WHAT NEXT? What If Quantitiative Easing Fails?

Print comment Post Comments
In a larger piece, "Quantitative Easing: Unconventional Monetary Policy and the Law of Unintended Consequences", RBC Capital Markets explores what alternatives are available if Quantitative Easing (gasp) fails?

"First, central banks could, of course, announce a new and expanded programme of outright asset purchases, or even some sort of open ended commitment to continue to buy a significant quantity of bonds until there is sufficient evidence of a sustainable recovery. But another, and arguably more potent, option is to announce prescribed (lower) targets for a selection of longer term interest rates, as was done by the Fed in the 1940s and early 1950s. Indeed, this is an approach which Ben Bernanke appeared particularly disposed towards in his now famous “Deflation: Making Sure it Doesn’t Happen Here” speech."

The piece is much longer and covers far more ground than just the What If? question, worth a read.