Abstract
Post 2008 US economic policy has centered on Quantitative Easing, QE. The expectation, or ostensible hope, was that injections of money would stimulate economic recovery and growth in the real sector. However, seven years later, the economy languishes. Monetary measures have not brought recovery to the real sector. It has generally escaped notice, but QE has had the effect of a tax increase on savers, retirees, and those with fixed or inelastic wages. Absent prospects for profitable investment in plant and equipment, industry will not invest even with historically low interest rates. Those who might save if interest returns rewarded it have incentive to spend and to borrow instead, but have not done enough to launch recovery.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
