QE Is Harmful. Would Doing Nothing Be Better For Markets?

QE is destabilizing the financial system by removing precious repo collateral

QE doesn’t work, at least not in the sense of fulfilling its objectives as a policy choice.

These would be, broadly, higher economic growth, higher employment, and higher inflation (the good kind).

In short, QE is supposed to be a monetary bazooka that does magical things. Instead, it’s been more magical thinking, not doing much good, while creating serious unintended consequences and second order effects.

Would it be better for central banks to just not do anything?

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