“As I look back, it now seems that, with all the thought and work and good intentions, which we provided, we achieved absolutely nothing… nothing that I did, and very little that old Ben [Strong of the Federal Reserve] did, internationally produced any good effect – or indeed any effect at all except that we collected money from a lot of poor devils and gave it over to the four winds.” -Montagu Norman, Governor of the Bank of England 1920-1944
Since the financial crisis nearly a decade ago, the Federal Reserve has printed trillions of dollars in an effort to create a “wealth effect” in the economy. Their theory goes that quantitative easing would make for rising prices of financial assets which should, in turn, make the wealthy feel more confident and thus spend more. By this process, a trickle-down effect would boost the economy.
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