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News Link • Economy - International

How The "QE Economy" Works (And Why It Doesn't) In One Giant Flowchart

• http://www.zerohedge.com, by Tyler Durden
 Or, as Bridgewater notes,
 
The effectiveness of quantitative easing is a function of the dollars spent and what those people do with that money.
 
If the dollars get spent on an asset that is very interchangeable with cash, then you don’t get much of an impact. You don’t get a multiplier from that.
 
If the dollar is spent on an asset that’s risky and very different from cash, then that money goes into other assets and into the real economy.
 
That’s really how you see the impact of quantitative easing.

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