Tuesday, January 17, 2012

Marshal Auerback — The ECB is Engaging in Massive QE


Read it at Pinetree Capital
The ECB is Engaging in Massive QE
by Marshal Auerback
(h/t Keven Fathi via email)

3 comments:

JKH said...

"However, such a massive recent and projected expansion of the European Central Banking system balance sheet should have an eventual impact through diverse channels"

Absolutely.

But not sounding overly MMTish there, Marshall.

TC said...

This Guy says the QE by the ECB will drive the EURUSD to 1.1000

http://seekingalpha.com/article/318540-why-the-new-conventional-wisdom-means-the-eur-usd-will-be-1-1000

It doesn't seem like he believes the link between QE and currency levels are legit, but rather the market perception will drive these the euro downward

rodney said...

I think the chartalist view is that QE doesn't alter the exchange rate per se. The EURO is probably losing value because the supply of currency is greater thatn demand. The dollar lost a lot of value because of the carry trade. But hey, I'm no expert.