{"id":31544,"date":"2018-02-24T07:15:11","date_gmt":"2018-02-24T12:15:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31544"},"modified":"2018-02-24T07:15:11","modified_gmt":"2018-02-24T12:15:11","slug":"it-was-not-effective-but-well-do-it-again","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31544","title":{"rendered":"It Was Not Effective, But We’ll Do It Again"},"content":{"rendered":"
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It Was Not Effective, But We’ll Do It Again<\/span><\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
Boston Fed President Eric Rosengren has some interesting comments about QE today.<\/p>\n<\/section>\n<\/div>\n<\/header>\n
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The Bond Buyer reports Rosengren Expects Fed to Again Resort to Asset Purchases<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Although large scale asset purchase programs may not be as effective as previously believed, Federal Reserve Bank of Boston President Eric Rosengren said Friday, \u201cit is quite likely\u201d that the programs will be needed in the future.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Crisis-Era Failures<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Wall Street Journal reports Fed\u2019s Crisis-Era, Bond-Buying Plan Was Largely Ineffective, Economists Say<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Federal Reserve\u2019s signature bond buying stimulus program undertaken during and in the wake of the financial crisis was largely a dud for the economy, argues a new paper authored by a group of prominent economists.<\/p>\n

The paper, which was to be presented Friday at a conference held in New York by the University of Chicago Booth School of Business, takes aim at the central bank\u2019s controversial purchases of long-term Treasury and mortgage debt.<\/p>\n

Given the unorthodox nature of the stimulus, arriving in an economy undergoing huge stress, central bankers and academics have long struggled to understand what the Fed got for a policy that took its portfolio of cash and bonds from a pre-crisis level of just over $800 billion in 2007 to a peak of $4.5 trillion.<\/p>\n

\u201cWe find that Fed actions and announcements were not a dominant determinant of 10-year yields and that whatever the initial impact of some Fed actions or announcements, the effects tended not to persist,\u201d the paper\u2019s authors wrote. Their findings were based on a study of Fed policy announcements referenced against market reactions.<\/p>\n

William Dudley of the Federal Reserve Bank of New York and Eric Rosengren of the Federal Reserve Bank of Boston both said on a panel discussing the paper\u2019s findings that they agree it\u2019s hard to understand the exact impact of the bond buying.<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

It Was Not Effective, But We’ll Do It Again Boston Fed President Eric Rosengren has some interesting comments about QE today. The Bond Buyer reports Rosengren Expects Fed to Again Resort to Asset Purchases. Although large scale asset purchase programs may not be as effective as previously believed, Federal Reserve Bank of Boston President Eric […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7557,18911,303,14648,13390,661,662,3650],"class_list":["post-31544","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asset-purchases","tag-eric-rosengren","tag-fed","tag-michael-shedlock","tag-mishtalk","tag-qe","tag-quantitative-easing","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31544"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31544\/revisions"}],"predecessor-version":[{"id":31545,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31544\/revisions\/31545"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}