Thursday, October 30, 2014

Marshall Auerback — The Fed Will End Its Bond Buying Program. Does It Matter?


MMT view of QE and its effectiveness.

Macrobits by Marshall Auerback
The Fed Will End Its Bond Buying Program. Does It Matter?
Marshall Auerback

2 comments:

Matt Franko said...

"What is shows is that US held its elevated fiscal deficit for long enough to support a stronger return to growth "

So increased savings resulted in more growth... hmmmmmm

Matt Franko said...

"One can argue that the fiscal deficit came down too rapidly in the US, which is why income growth remains sluggish, "

How can a YoY marked reduction in savings negatively impact income growth?

And as far as income growth "remaining sluggish" here:

http://www.bea.gov/newsreleases/national/pi/2014/pdf/pi0814_hist.pdf

Up 22% in 5 years since 2009... ????