Does QE Cause Wealth Inequality?

The author took way too long to introduce what the abbreviation QE in this context means. It's only in the 5th paragraph. It's generally not a great idea to use an unclear acronym in the title. If you really must, at least do the reader the curtesy of defining it up front, rather than making them dig for it. To someone who's non-American and likely does not keep an eye on the FED, QE isn't likely going to be they way they've seen the idea expressed. You can know what Quantitative Easing is without immediately recognizing QE out of context in a title.

If you don't already understand what QE in this context is, it is unlikely you will be able to fully understand the rest of this article.

The thing is we want less stupid speculation and asset bubbles and yet the economy is running far below potential, with the "tight labor markets" right now just a glimpse of how it was before (and probably a fleeting one if the inflation class warriers have their way like in the 1970s).

To fix both problems --- because we need to stop just making ourselves poorer and less coordinated with prudish neoliberalism --- we should probably try to get experimental with monetary policy. Having the Fed tweak a UBI instead might help.

Remember, the way that capitalism is supposed to work is that demand validates investment. Easy credit from banks to big institutions with poor consumers is stupid because too many investments still look bad! Hand out cash, and then businesses can chase the people's demand, rather than trying to create the demand all weird post-modernly.

No more throwing easy money at startups waiting for them to finally be profittable 10 years later. Yes more making the poorest better off and letting the resulting supply-chain bottlenecks show where investment is actually needed. If there's no current bottleneck, you aren't trying hard enough!

It doesn't necessarily, but there are some issues to think about:

1) Interest rates that are low mean that middle-class savings accounts don't grown in size. QE requires low interest rates as I understand it.

2) MMT is linked to QE but guess what, an oligarchic system isn't going to distribute QE capital to middle class and poor people, it's going to go into the pockets of the ruling class.

In any case, you really can't trust the corporate economists, and their performance before the 2008-2009 economic crash is proof of that. It's as bad as if the entire climate science community had predicted global cooling and we got global warming instead - clearly, the scientific community would conclude that their models are fundamentally flawed.

This of course is why economics professors are safely enclosed in university business departments, so they don't have to face constant ridicule from real scientists.

pretty sure if you follow their blog then you're pre-supposed to already have an interest in finance. and therefore should know the basic concept of QE. It's like expecting a programming blog to explain a for loop.

not sure its the authors fault it got posted here