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quantitative easing

Analysis and Comment (16)

Volte face for Mario Draghi. Volte face for Mario Draghi. Boris Roessler/EPA

Draghi’s plea for Europe is an admission the US got it right

Mario Draghi almost single-handedly rescued the Eurozone from disaster two years ago, by pledging to do “whatever it takes to preserve the euro”, so the appeal from the European Central Bank (ECB) chief…
Is the Bank of Japan holding the country back? Is the Bank of Japan holding the country back? EPA

Japan’s central bank is out of control and must be tamed

In the second quarter of this year Japan recorded its largest GDP contraction since the earthquake and tsunami hit in 2011. This time, the single most important reason for the downturn is technical: demand…
Last year’s G-20 knees up. This year expect the taper, the IMF and corporate tax evasion to be the main themes. Last year’s G-20 knees up. This year expect the taper, the IMF and corporate tax evasion to be the main themes. Flickr

We are all spillovers now: G20 finance meeting explained

Finance ministers and central bank governors from the Group of 20 major economies will meet in Sydney this week. A lot of troubled financial waters have flowed under the bridge since this group last met…
Incoming US Federal Reserve chair Janet Yellen must choose whether to further taper the quantitative easing program. Incoming US Federal Reserve chair Janet Yellen must choose whether to further taper the quantitative easing program. EPA/Jim Lo Scalzo

Markets watch as Bernanke hands over to Yellen

Ben Bernanke prepares to vacate his seat as Chairman of the US Federal Reserve on Friday, making way for for Janet Yellen, just as the developed economies finally seem to be coming right. Yellen’s impact…
Outgoing US Federal Reserve chairman Ben Bernanke is cautiously pulling back the Fed’s quantitative easing program. Outgoing US Federal Reserve chairman Ben Bernanke is cautiously pulling back the Fed’s quantitative easing program. AAP

Explainer: What US Fed tapering means for markets

The US Federal Reserve has announced that after more than five years of support, the “tapering” of its quantitative easing program is to begin. So what will the consequences of the gradual withdrawal of…
Anyone need a cash injection? Anyone need a cash injection? Nick Ares

The regressive politics of quantitative easing

When financial markets stood on the verge of collapse in the summer of 2008, two of the world’s most important central banks, the US Federal Reserve and the Bank of England, began considering unorthodox…
Brazil could be at risk if the QE money dries up. Brazil could be at risk if the QE money dries up. Owen Humphreys/PA

Not all emerging markets are in the same QE boat

The US Federal Reserve’s surprise decision to continue quantitative easing (QE) was generally well received in those countries with rapidly growing and industrialising economies. They were worried that…
Indian Finance Minister P. Chidambaram is facing high inflation, an annual trade deficit of US$200 billion and a falling rupee. Indian Finance Minister P. Chidambaram is facing high inflation, an annual trade deficit of US$200 billion and a falling rupee. AAP

India’s inflation woes could see rupee fall even further

The Indian economy is in trouble. The anticipated tapering of the US Federal Reserve’s aggressively expansionary quantitative easing program has seen a drying up of capital inflow into a country with a…
Nice eagle, shame about the growth. Nice eagle, shame about the growth. Tim Evanson

Quantitative easing has undermined US growth

With the US economy experiencing an extremely slow recovery from the recession of 2007-09, debates over the role of monetary policy have come to the forefront, especially given the variety of new powers…
The Bank of England: still the key to growth? The Bank of England: still the key to growth? Yui Mok/PA

Ignore the calls for stimulus and stick with Plan A

Many critics of the coalition government’s “Plan A” argue that it should deviate from deficit reduction plans to instead stimulate growth via additional infrastructure spending. Recent advocates of this…
The US Federal Reserve has made explicit the economic targets it wants to reach through its monetary policy. The US Federal Reserve has made explicit the economic targets it wants to reach through its monetary policy. AAP

US Fed stimulus names its targets in new policy direction

The announcement by the US Federal Reserve Bank that it would link its monetary policy to the achievement of specific economic targets beyond inflation is a new development in its approach to policy. In…
The US Federal Reserve has extended its bond-buying program, but will it be effective in boosting the economy? The US Federal Reserve has extended its bond-buying program, but will it be effective in boosting the economy? Image from www.shutterstock.com

More money, more problems? The quantitative easing quandary

In an attempt to bolster the economy, the Federal Reserve announced a fresh round of bond purchases to replace Operation Twist, the stimulus program that is set to expire this month. It will spend $US45…
Chairman of the Federal Reserve, Ben Bernanke, is hoping that a third round of quantitative easing can bolster confidence in the US economy. Chairman of the Federal Reserve, Ben Bernanke, is hoping that a third round of quantitative easing can bolster confidence in the US economy. AAP

Bringing out the big guns: Bernanke unleashes QE3

Finding bright spots in the US economy is a seemingly thankless task. The unemployment rate, despite dipping slightly in previous months, remains above 8%; last month, employers could only add 96,000 jobs…