Quantitative Easing (QE) - How Will the Fed's Financial Experiment Work?

8/8/2019 Quantitative Easing (QE) - How Will the Fed's Financial Experiment Work?

1/10

Cj|`bf`v 6?4?

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]h` L`m`vdi V`w`v|` v`g`c}i{ gjclkvb`m ~``aw jl wp`gid}kjc dcm vbjvw f{ dccjcgkcn }h` w}dv} jl dw`gjcm vjcm jl T@# ]h` L`m v`|`di`m }h`kv pidcw }j pvghdw` -


2/10

N`|`vw ^`di}h Bdcdn`b`c}) IIG_dn` 6

(D |di` dfj|` }h` ikc` b`dcw }hd} }h` PW nj|`vcb`c} wp`c} bjv` bjc`{ }hd} {`dv }hdc k} gjii`g}`m kc }dx`w#

Cj}kg` hj~ bgh }h` PW dccdi m`lkgk} hdw nvj~c wkcg` 4;>?) dcm tk}` mvdbd}kgdii{ j|`v }h` idw} l`~ {`dvw#+

]j bda` p ljv k}w m`lkgk} dcm gjb` p ~k}h bjc`{ }j wp`cm) }h` PW ]v`dwv{ dfj} jcg` p`v bjc}hjll`vw PW ]v`dwv{ Fjcmw ljv wdi` d wjikgk}d}kjc }j fjvvj~ bjc`{ }j lcm }h` nj|`vcb`c}w fmn`}#Dndkc }j bda` d gjbpdvkwjc }j {j jv K k} ~jim f` dw kl ~` hdm }j fjvvj~ bjv` dcm bjv` bjc`{ jcjv gv`mk} gdvmw `dgh bjc}h ew} }j a``p pd{kcn jv fkiiw# ]h` PW wìikcn ]v`dwv{ fjcmw kw mkv`g}i{dcdijnjw }j d ldbki{ vcckcn d hknh`v dcm kcgv`dwkcn fdidcg` jc }h`kv gv`mk} gdvmw }j w}d{ dlijd}#

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]h` vd}`w jc PW m`f} dv` w`} dcm m`}`vbkc`m f{ }h` dbjc} jl m`bdcm d} }h` bjc}hi{ dg}kjcw }h`bjv` m`bdcm }j f{ ]v`dwv{w) }h` ij~`v }h` kc}`v`w} vd}`w dv`# ]h` }{pkgdi dcm idvn`w} f{`vw jl PWm`f} dv` j}h`v gjc}vk`w (`wp`gkdii{ Ghkcd dcm Edpdc#+ J}h`v idvn` f{`vw dv` p`cwkjc lcmw) kcwvdcg`gjbpdck`w dcm j}h`v kcw}k}}kjcdi kc|`w}jvw# Kl }h`w` f{`vw wij~ mj~c jv w}jp f{kcn ]v`dwv{ fjcmw)}h`c m`bdcm m`gv`dw`w ~hkgh ~jim dibjw} kcw}dc}i{ gdw` kc}`v`w} vd}`w }j vkw`#

Dcm }hkw kw ~h`v` T@ gjb`w kc

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H`v` kw hj~ k} ~jvaw1 jc` pdv} jl }h` PW nj|`vcb`c}) ]h` L`m`vdi V`w`v|`) i`cmw bjc`{ }j dcj}h`vpdv} jl }h` PW nj|`vcb`c} f{ f{kcn PW ]v`dwv{ fjcmw d} }h` bjc}hi{ dg}kjc# (Cj}` }hd} L`m kw cj}jllkgkdii{ pdv} jl }h` PW nj|`vcb`c}) f} jp`vd}`w dw d m`"ldg}j fvdcgh#+


3/10


Akcm jl bda`w {jv h`dm wpkc ~h`c {j }v{ dcm gjbpv`h`cm k}# Hj~ gdc d nj|`vcb`c} fjvvj~ bjc`{}j k}w`il: ]h` dcw~`v1 }h` L`m pvkc}w c`~ bjc`{ }j pd{ ljv }h` pvghdw` jl }h`w` ]v`dwv{ fjcmw# T@kw d wvv`p}k}kjw b`}hjm jl pvkc}kcn bjc`{) dcm m` }j }h` hn` wgdi` jl T@) hdw gjc}vkf}`m }j d bkcmfjnnikcn kcgv`dw` kc }h` dbjc} jl PW mjiidvw#

K}w Dii d Fkn @xp`vkb`c}

Dw jc` gjcwkm`vw }h` fkudvv` `gjcjbkg w}d}` jl }h` nijf`) ~h`v` }h` ~jvimw bjw} pj~`vli dcm jcg`~`di}hk`w} cd}kjc kw cj~ wj m``pi{ kc m`f} }hd} k} bw} fjvvj~ bjc`{ }j k}w`il kc jvm`v }j pd{ k}w fkiiw){j bknh} ~jcm`v hj~ ~kii }hkw dii }vc j}: ]h`v` kw v`dii{ cj hkw}jvkgdi pv`g`m`c} kc PW lkcdcgkdi

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^` mj acj~ hj~`|`v ~hd} }h` L`mw jfe`g}k|`w dv` dcm ~` gdc km`c}kl{ wjb` dv`dw jl }h` `gjcjb{dcm bdva`}w }hd} bd{ f` nv`d}i{ kbpdg}`m f{ T@# ]h` L`mw hjp`m ljv pjikg{ njdiw ljv T@ kw }j1 a``pkc}`v`w} vd}`w ij~) kcgv`dw` dww`} pvkg`w jl w}jgaw dcm hjb`w) dcm w}kbid}` }h` `gjcjb{ dcm ejfnvj~}h# ]hjw` dv` dii dmbkvdfi` njdiw }j f` wv`# I`}w v`|k`~ }h`w` L`m jfe`g}k|`w dcm wjb` j}h`vdv`dw ~h`v` T@ bknh} hd|` d bdejv kbpdg}#


4/10

N`|`vw ^`di}h Bdcdn`b`c}) IIG_dn` =

W}jgaw , V`di @w}d}` _vkg`w V`lid}kjc:

]h` PW kw gjbbk}}kcn }j pvkc} dc `x}vd -


5/10


]h` L`m kw }v{kcn }j `cgjvdn` gjcwb`vw }j fjvvj~ bjc`{ d} }h`w` kcgv`mkfi{ ij~ vd}`w dcm wp`cmbjc`{ jc hjb`w) gdvw) dcm j}h`v idvn` }kga`} k}`bw) ~hkgh }h`{ hjp` ~kii }h`c w}kbid}` }h` `gjcjb{#Kl kc}`v`w} vd}`w dv` hknh`v) }hdc }h` pjikg{ bda`vw d} }h` L`m l`dv }hd} p`jpi` ~kii f` i`ww ikaì{ }jpvghdw` gdvw dcm hjb` dcm lv}h`v ~`da`c }h` `gjcjb{#

]h` dw}}` jfw`v|`v bknh} dwa) ~hd} ~kii hdpp`c jcg` T@ `cmw dcm }h` L`m w}jpw f{kcn PW fjcmw: Dvff`v fdcm gdc f` w}v`}gh`m kl }h` pvjp`v pv`wwv` kw dppik`m f} ~h`c }h` pv`wwv` kw vì`dw`m }h`vff`v fdcm nj`w fdga }j k}w jvknkcdi whdp`# Kc }h` wdb` ~d{ k} kw fìk`|`m }hd} ~h`c }h` L`m g`dw`w T@dcm k}w pvghdw` jl PW fjcmw) }hdc ew} ika` }hd} vff`v fdcm) m`bdcm ~kii wcdp fdga }j k}w jvknkcdi(ij~`v+ i`|ì dcm dw d v`wi} kc}`v`w} vd}`w ~jim wjdv#

^kii }hd} hdpp`c dcm ~h`c ~kii k} hdpp`c: Cj jc` acj~w jl gjvw`# Jc` }hkcn }hd} w``bw }j f` gi`dv)}h` L`m kw lii{ gjbbk}}`m }j wkcn T@) dcm k} kw pjwwkfi` }hd} vd}`w bd{ w}d{ tk}` ij~ dw ijcn dw }h`{a``p ljiij~kcn }hd} pjikg{# Tkpp`m dc `gjcjbkw} dfj} }h` L`m dcm kc}`v`w} vd}`w) C`|`vcm`v`w}kbd}` }h` pj~`v jl }h` pvkc}kcn pv`ww$

]h` PW Mjiidv ^kii T@ ^`da`c K}:

]h` PW Mjiidv kw p`vhdpw d} nv`d} vkwa m` }j pjwwkfi` dm|`vw` kbpdg}w jl T@# ]h` v`dwjc kw v`dii{ tk}`

wkbpi` }h` bjv` dfcmdc} wjb`}hkcn kw) }h` ij~`v k}w |di` }`cmw }j f`# ]h` PW f{ pvkc}kcn `xg`wwk|`

dbjc}w jl mjiidvw hdw mki}`m k}w |di`# Kc dmmk}kjc) f{ njkcn `|`v m``p`v kc}j m`f}) }h` PW hdw f`nc}j `vjm` k}w gv`mkfkik}{ }hd} k} ~kii f` dfi` }j v`pd{) dcm wj d hjim`v jl d PWM) `wp`gkdii{ jc` j}wkm` jl

jv gjc}v{) bknh} f`nc }j ~jcm`v ~hd} |di` }hd} pk`g` jl nv``c pdp`v v`dii{ v`pv`w`c}w# Cj}

wvpvkwkcni{ }h` |di` jl }h` PWM hdw mvjpp`m mvdbd}kgdii{ j|`v }h` idw} }`c {`dvw gjkcgkmkcn `xdg}i{

dcm wkbi}dc`jwi{ ~k}h }h` b`}`jvkg vkw` kc bjc`{ pvkc}kcn dcm }h` vdpkm kcgv`dw` kc }h` PW m`lkgk}#

(_i`dw` w`` }h` ghdv} fìj~#+


6/10


7/10

N`|`vw ^`di}h Bdcdn`b`c}) IIG_dn` >

Njim , T@) Pp) Pp dcm D~d{

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(_vkg` jl njim j|`v }h` idw} 6? {`dvw# Gjbpdv` }hkw nvdph }j }h` jc` jl PW m`lkgk}w dfj|`# Cj}kg` }hd}}h` pvkg` jl njim w}dv}`m }j vkw` kc dfj} 6??4 }h` wdb` {`dv }hd} m`lkgk}w w}dv}`m }h`kv mvdbd}kg

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pvjlk}) mj`w cj} pd{ v`c} jv d mk|km`cm# Njim ldkiw dii }h` }`w}w jl dc kc|`w}b`c} dcm dw d bd}}`v jl ldg}njim kw cj} dc kc|`w}b`c}#

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V`b`bf`v }hd} }h` v`g`c} kcgv`dw` kc }h` pvkg` jl njim hdpp`c`m mvkcn d p`vkjm jl ij~ kclid}kjc# ^hd}bknh} hdpp`c }j }h` pvkg` jl njim kl kclid}kjc f`gjb`w w`|`v`: Cj jc` acj~w ljv wv`) dcm }h`v` dv`


8/10


g`v}dkci{ cj ndvdc}``w ljv }h` l}v`# Hj~`|`v) kl {j w` }h` hknh kclid}kjc p`vkjm jl }h` >?w dcm`dvi{ 8?w dw dc `xdbpi` lvjb hkw}jv{) }h` pvkg` jl njim mvkcn }hjw` {`dvw vjw` dfj} 60??%#

Kc|`w}jvw pv`l`vv`m }j hjim njim vd}h`v }hdc mjiidvw kc dc `c|kvjcb`c} ~h`v` }h` mjiidv ~dw ijwkcn |di`vdpkmi{ m` }j hknh kclid}kjc#

Kclid}kjc _vkg` jl Gjbbjmk}k`w

Njim kw cj} }h` jci{ gjbbjmk}{ }hd} }`cmw }j kcgv`dw` kc pvkg` mvkcn p`vkjmw jl kclid}kjc# Bjw}gjbbjmk}{ }vdcwdg}kjcw) `wp`gkdii{ }hjw` f`}~``c cd}kjcw) dv` }vdcwdg}`m kc PWM# ]h`v`ljv`) ~h`c }h`|di` jl }h` PWM m`gv`dw`w) gjbbjmk}{ pvkg`w c`g`wwdvki{ }`cm }j kcgv`dw` (}j PW gk}ku`cw+ f`gdw` k}}da`w bjv` mjiidvw }j f{ }hd} gjbbjmk}{#

(Gjbbjmk}k`w dv` }h` fdwkg w}ll jl ikl`) dcm kcgim` ljjm w}dpi`w ika` vkg`) gjvc dcm ~h`d}) kcmw}vkdib`}diw ika` gjpp`v) kvjc dcm dibkcb) dcm p`}vji`b pvjmg}w ika` jki) cd}vdi ndw dcm gjdi#+

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]h` j}h`v ~d{ }hd} T@ i`dmw }j kclid}kjc wkbpi{ hdw }j mj ~k}h }jj bgh bjc`{# Bki}jc Lvk`mbdc) dv`cj~c`m Cjf`i ~kcckcn `gjcjbkw} wdkm }hd} kclid}kjc kw dcm di~d{w hdw f``c d bjc`}dv{ lkwgdiph`cjb`cjc# Kc j}h`v ~jvmw) ~h`c }h` nj|`vcb`c} pvkc}w }jj bgh bjc`{ }h`v` }`cmw }j f` kclid}kjc#V`b`bf`v T@ kw d fdga mjjv b`}hjm jl pvkc}kcn bjc`{ kc w}dnn`vkcni{ idvn` dbjc}w# K} kw }hkw wgdi`jl mjiidv gv`d}kjc }hd} Bki}jc Lvk`mbdc dcm hkw}jv{ wnn`w} }hd} |`v{ jl}`c i`dmw }j kclid}kjc kc }h`l}v`#

(h}}p5**v`w`dvgh#w}ijkwl`m#jvn*lv`m6*nvdph*:w%0F4%0M%0Fkm%0M2DBFCW+


9/10


10/10

N`|`vw ^`di}h Bdcdn`b`c}) IIG_dn` 4?

N`|`vw `di}h Bdcdn`b`c}) IIGK";? Ida`_idg` G`c}`v4

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Quantitative Easing (QE) - How Will the Fed's Financial Experiment Work?