"Fed's Bullard wants inflation pickup before tapering QE reut.rs/1aeEBWc" & if QE is itself deflationary? Cc @frances_coppola
— Tomas Hirst (@tomashirstmoney) May 24, 2013
@tomashirstmoney QE forever unless there is an oil price shock!Andrew Lainton, Steve Roth
— Frances Coppola (@Frances_Coppola) May 24, 2013
Is QE a lengthy repo deal, or permanent Treas/GSE bond retirement (in which case it is "monetizing debt"). I don't think anyone knows.
— Steve Roth (@asymptosis) May 24, 2013
@asymptosis @frances_coppolaQE is a lengthy repo deal - but a promise to keep itgoing permanently is same as debt monetarisation
— AndrewLainton (@AndrewLainton) May 24, 2013
@frances_coppola Evans Pritchard Monetarist? ;Who cares about the monetary base. It is irrelevant.' blogs.telegraph.co.uk/finance/ambros…Frances Coppola,MarleyBrooklyn1, Beate Reszat, Econ Matters
— AndrewLainton (@AndrewLainton) May 24, 2013
Tonight or tomorrow I shall write a post about the deflationary effects of QE....that should upset lots of people *grins*
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola I currently write about reasons for price differences for similar products and lack of arbitrage. But only slow progress.
— Beate Reszat (@rszbt) May 24, 2013
@rszbt I've been thinking about this for ages. Evidence points to it being deflationary for the real economy, problem is working out why.
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola Yes, seems a difficult subject. But an important one, especially under current circumstances!
— Beate Reszat (@rszbt) May 24, 2013
@rszbt Yes. I'm seriously worried about Japan's QE programme....can't see how it can possibly reflate their economy.
— Frances Coppola (@Frances_Coppola) May 24, 2013
@rszbt not with an ageing population, a high savings level and a prevalent belief that QE a) depresses returns on savings b) is inflationary
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola imo, there is nothing really new with the Japanese program. Only more of the same. Did not work and probably will not.
— Beate Reszat (@rszbt) May 24, 2013
@rszbt more QE surely has to encourage even more saving.....which is not what they need :(
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola Indeed. But what else shall Mrs Watanabe do without perspective?
— Beate Reszat (@rszbt) May 24, 2013
@rszbt Mrs Watanabe will do whatever seems rational to her. Which I wd guess would be to increase savings to ensure old age is comfortable
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola Depends. She likes the Nikkei (not at the moment, though:-)) It's not all old-age provision ...
— Beate Reszat (@rszbt) May 24, 2013
@rszbt equities have a place in pension savings....Nikkei fall was retail sell-off though, so she's definitely jittery about them.
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola Japan is always more difficult to explain. Other structures, institutions, shares foreign/domestic investors etc.
— Beate Reszat (@rszbt) May 24, 2013
@rszbt Yes. I was thinking more generally about QE, not just about Japan which I agree is different.
— Frances Coppola (@Frances_Coppola) May 24, 2013
Agreed! @frances_coppola: @rszbt equities have a place in pension savings....Nikkei fall was retail sell-off though, so she's definitely ...
— Beate Reszat (@rszbt) May 24, 2013
RT @econmatters: New Post - Can The U.S. Grow by Printing More Money? bit.ly/10RKxPy #EconMatters" cc @frances_coppola
— Beate Reszat (@rszbt) May 24, 2013
@rszbt @econmatters Wonder how much he earned for writing that? He doesn't seem to know what QE is.
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola @rszbt #Fed expects QE to drive #inflation/growth, but the inflation we see is mainly in #equity instead of #economy
— EconMatters (@EconMatters) May 24, 2013
@econmatters @rszbt That's fair enough. I'm just objecting to the term "printing money" for QE. It's incorrect.
— Frances Coppola (@Frances_Coppola) May 24, 2013
@frances_coppola @rszbt Indeed, whether Fed's printing USD has been under debate. it depends on perspective econmatters.com/2013/04/regard…
— EconMatters (@EconMatters) May 24, 2013
@frances_coppola @rszbt Eventually QE will have inflationary consequence but not right now due to weak demand econmatters.com/2013/05/the-ma…
— EconMatters (@EconMatters) May 24, 2013
