Local copy of Sense and Nonsense in the Quantitative Easing Debate. which appeard VoxEu ec 7 2010. The great savior and stimulator, or the beginning of devaluation and inflation? Actually, neither -- both sides keep forgetting that money and short term debt are the same thing when interest rates hit zero. All this does is to shorten the maturity structure of Government debt. However, that's not such a good thing -- it makes us more vulnerable to Greek style crises. Also a short reminder about the Friedman rule. 2013 note to some crazy bloggers who claim I've been an inflation maven, the section "no inflationary effect" documents some facts.

Read More >