OK – so it seems clear – more QE is coming. But is this a good thing?
In Bernanke’s comments on Friday, he noted that the Fed has much less experience in judging the economic effects of more QE versus their more traditional monetary policy actions – and said that this “makes it challenging to determine the appropriate quantity and pace of purchases and to communicate this policy response to the public.” True – this amount of money-printing is unprecedented… and begs the question of if more QE really makes sense. The idea is to strengthen the economy by helping make interest rates lower… but the questions remain – will it work, and what consequences may result?

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